Banking News Saga Savings Accounts Hold More Than 3 Billion Pounds 2607

Saga savings accounts hold more than £3billion

05 December 2008 / by Rachael Stiles
Saga savings accounts have emerged as a winner as a result of the UK’s credit crunch and imminent recession.

As interest rates and the credibility of banks fall, finding a safe savings account has become a priority for many Brits and more than £3billion of savers cash is now stashed in a Saga savings account.

In fact, Saga’s savings products have seen growth of 50 per cent since the start of 2008. Paul Green, head of communications at Saga said: “In uncertain times, people are turning to British brands they trust at the same time offer good rates.

“Saga has benefitted from this flight to quality. We predict that with the current economic crisis planning out before them, people will be more inclined to go with a well known provider when they are next making decisions in the financial marketplace.”

Other savings account providers which have seen an influx of savers since the credit crunch include the Post Office after it was discovered that its savers are protected by the Bank of Ireland which guarantees all savings unlike the UK’s £50,000 compensation scheme.

Similarly Northern Rock was forced to withdraw most of its savings products as savers flocked to the recently nationalised bank which cannot exceed 1.5 per cent of the market share of savings.

Other brands considered safe include Treasury backed National Savings & Investments and prosperous brands such as Abbey which was recently taken over by global banking group Santander.

In addition to being a well known brand, in May this year Saga launched its Top 5 Tracker savings account, which offers a rate equivalent to the average of the best 5 online savings rates as recorded by The most recent rate is 5.66 per cent, which is relatively high, considering the base rate is now just two per cent.

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© Fair Investment Company Ltd

Written by Editorial Team