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Confidence in savings accounts grows

24 August 2009 / by Andy Davies

Confidence amongst savers appears to be growing as Nationwide's Future Savings Index recorded its highest level since June 2008.

The building society's Future Savings Index now stands at 106 points for July, representing a five point increase on June, as 18 per cent of savers believe they will be saving more in six months time.

This means the gap between those who think they will be saving more and those who think they will be saving less has reached it narrowest margin since records began in 2008.

Nationwide's main Savings Index rose by two points to 82 points for July, while its Importance of Savings Index increased by 13 points to 98, as 60 per cent of people believe saving in general is important.

Commenting on the Future Index rise, Andy Hutchinson, head of savings at Nationwide, said: This is now at its highest level since the Index began in June 2008. While this is certainly encouraging, the number of people who believe they will save less in six months’ time still outnumbers those who believe they can save more.

"Nonetheless, what has driven the Future Savings Index up is the fact that this difference between those who believe they will save more and those who believe they will save less in the future is now smaller than ever, which shows that confidence about saving in the future is creeping up."

In addition, Nationwide's Environment Savings Index also rose by six points to 71 points, as 20 per cent of people think now is the right time to save.

Mr Hutchinson believes all four indexes increasing is good news, he said: "This is very encouraging and could be the strongest evidence yet that confidence in the savings market is beginning to return, even though this is not yet carrying through to action.

He added: "The experience of recession appears to be generating a shift in attitude toward savings, reflected in the largest increase on record in the Importance of Savings Index.

"It has taken some time for this shift in attitudes to take place, perhaps because of the very large cut in interest rates over the last year."

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