With all the turmoil in the financial markets worrying savers into thinking their money might not be safe, thousands have been switching savings accounts to find a safe haven for their cash, with security and value for money emerging as the prior motives.Leeds Building Society savings accounts
have experienced "healthy savings inflows" throughout 2008, including strong performances in September and October, as many savers see building societies
as a safer haven than the banks.
"There has been unprecedented turmoil in the markets and our successful, sustainable and efficient business model, providing value for money products backed up by excellent service continues to attract customers looking for branch based passbook accounts." said Karen Wint, general manager of marketing and customer services at Leeds Building Society.
"There is no doubt that people want to know that their money is safe and that they can call into their branch to access it."
Leeds has just launched a new one year fixed rate savings bond
, paying five per cent interest, with access to 50 per cent of the initial amount invested before the end of the term, without having to give notice or incur a penalty.
Savers have become increasingly concerned about the security of their banks and their savings in recent weeks as headlines announce the collapse or nationalisation of one financial institution after another.
Customers of Icesave, for example, the UK savings arm of the collapsed Icelandic bank Landsbanki, are still awaiting compensation after fearing that they might never see their money again.
To try and stem the flow of savers moving their money from one savings account
to another, causing further uncertainty in the financial markets, the Government has upped the Financial Services Compensation Scheme from £35,000 to £50,000.
© Fair Investment