Savings figures for January 2006 were the highest for that month since 2001, with net inflows of £212m, compared to net withdrawals of £299m.

Other figures from the Building Societies Association (BSA) showed gross advances amounted to £3,174m in January 2006, compared to £2,682m in January 2005. Approvals reached £2,908m in January 2006, increasing from £2,037m in January 2005.

Adrian Coles, director general of the BSA, said: “January’s savings inflows were the highest figures for that month since 2001. Normally credit card repayments and working off the Christmas ‘financial hangover’ results in outflows from savings accounts in January. The figures confirm the emerging trend of strong savings which became apparent in the second half of 2005.”