Volatility 'boosts saving balances'
Volatility in global investment markets has encouraged consumers to save more money into accounts held by building societies and other mutual bodies, it has been suggested.
Building Societies Association (BSA) figures show that the saving balances held by mutuals rose by £0.6 billion in September 2011.
During the month, their net receipts reached £0.3 billion, excluding interest on savings accounts.
Mutuals saw their saving balances go up by £2.7 billion between January and September, the research also showed.
BSA director general Adrian Cole commented: "Savings balances held with mutual deposit takers have risen by £1.6 billion over the third quarter of 2011, in stark contrast to the decrease of £2.3 billion for the same period in 2010.
"Part of the reason for this improvement is likely to be the recent stock market volatility causing investors to seek a more stable home for their money."
Copyright © Press Association 2011
Find Your Financial Consultant