BSA: Savings rise to 5 year high

25 April 2006
According to a report by the Building Societies Association (BSA), total savings during the first quarter of 2006 have risen to their highest level since 2001.

Building societies' net inflows are up from £221 million in March last year to £384 million for last month, an increase of almost 74 per cent.

Net receipts in cash ISAs also showed a marked increase, up £104 million on last year to £603 million in March 2006.

Adrian Coles, director-general of the BSA, said: "Savings inflows into building societies remain strong. The first quarter's figure was over four times that of 2005 and the highest first quarter inflow since 2001.

"The slightly uncertain economic environment has seen many households turning to building societies for competitive products and a safe home for their savings," Mr Coles added.

The savings upturn is complimented by a rise in the mortgage lending market, a traditional feature of the spring months, when the annual winter lull in house purchases subsides.

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