Nationwide Savings Index bounces back

All four of the Nationwide Savings indices have bounced back, following last month's falls. The Savings Index is now at its highest level since November 2008.

Andy Hutchinson, head of savings at Nationwide, says: "We believe that the strong rise in the Savings Index reflects the parallel bounce in the overall feel of consumer confidence in September. It is possible households are becoming increasingly confident that the recession is coming to an end, even though their positive sentiment may be premature. This could have boosted confidence in consumers' ability to save in the future and it will be particularly interesting next month to see the impact of the recent ISA changes for the over-50s.

"Finally, while the latest increases recorded across the savings indices are encouraging, the falls seen last month serve as a reminder that we should remain cautious because the market may not yet have stabilised".