Building Societies continue to attract record savings

Strong savings inflows to building societies continued into February, with £1.35 billion in net receipts being recorded, according to the Buildings Societies Association (BSA). This is the highest February inflow since 1997.

Commenting on the figures, Brian Morris, Head of Savings Policy at the BSA said: “Building societies have enjoyed another strong month as high interest rates and attractive products have encouraged people to save with societies. The continuing economic uncertainty and volatility in stock markets have provided further incentives to put money in cash savings.”

Mr Morris continued: “Net lending by building societies is down compared to this time last year. This suggests the lower levels of activity in the housing market reported by the Land Registry yesterday for December are continuing into 2008.”