Market volatility 'pushes investors to savings safe haven'

27 August 2007
High interest savings accounts are being viewed as more attractive options by those put off by stock market volatility, it has been claimed.

According to research from Sainsbury's Bank, investors are looking to the sector as a "safe haven" where their money is protected from the risk the current climate of the market may hold.

The company added that between August 6th and August 19th 2007, high interest savings accounts recorded 42 per cent more activity, which it believes can be directly attributed to market performance.

"Irrespective of which sort of asset class you look at, a rate of over six per cent … is a very attractive rate. So when the stock market is volatile, a high paying savings account would look very attractive to an investor," said Peter Wood, head of savings for the firm.

A number of high interest savings accounts are available on the market, with many offering interest on funds of over six per cent.

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