Cash ISAs lead the way in record April savings inflow

The highest ever monthly inflow to building society cash ISA accounts contributed to a record April savings inflow for societies of £1.8 billion, according to the Buildings Societies Association (BSA).

The £2.1 billion ISA inflow during April represents a record monthly amount for building society cash ISA products, and will help to ensure that societies remain well funded.

Commenting on the figures, Adrian Coles, Director-General of the BSA said: "Yet again building societies have attracted record savings inflows during April, continuing their excellent performance in the savings market. Savers are increasingly recognising that the very competitive saving products that building societies offer represent excellent homes for their cash in these uncertain economic times. It appears that building society cash ISAs were particularly popular because of a less optimistic outlook for future stock market performance."

Turning to the lending figures, Mr. Coles said "Gross lending was down just 3.3% on the same month last year, and was similar to the level seen in March this year. Although approvals picked up slightly from March, they are still down on last year, and mortgage activity will be subdued in the coming months.

"However, the record savings figures mean that societies, unlike some wholesale funded lenders, have funds available for mortgage lending. Despite the depressed mortgage market, building societies remain open for business (every society issued new mortgages during April) and are able to lend."