Property falls out of favour with savers

June 6, 2008 by admin  
Filed under News, News-Banking

After years of seeing property prices rocket, people are finally becoming weary of putting their hard-earned cash into homes and may begin to stash money away in savings accounts instead, an expert has indicated.

Donna Bradshaw, an IFA and financial planning strategist, has said that following a period when people became used to spending, there may now be “a turn around back to saving again”.

She said that in the past, the country’s “obsession with property” has meant that many people have used their houses as “a high street bank“.

However, with the credit crunch hitting hard, Ms Bradshaw said: “I think we’re going to see a shift back to saving.”

Some people already appear to be stashing their cash away in a safe pace to earn interest, as the Building Societies Association recently reported the highest ever monthly inflow to building society cash ISAs in April, bringing the total put in societies’ savings accounts to £1.8 billion.

Tags: saving, obsession, building societies association, saving."Some people, Donna Bradshaw, financial planning, indicated.donna bradshaw, Financial economics

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