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Record deposits in banks for April

July 3, 2008 by admin  
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According to recent reports April saw consumers in the UK deposit record savings in high street banks, with many rushing to take advantage of higher returns on deposits. Reports show that there was a surge in the level of deposits made by savers in the UK, with many trying to put money aside in order to try and combat the increases in living costs. However, the report also showed that only 50% of consumers see the need to put money aside in savings.

Officials from the British Banker’s Association have stated that the increase in deposits from savers partly reflects strong levels of deposits in ISAs than has been seen in previous years. However, the BBA has said that the increase in deposit levels from savers is also the result of higher returned available on savings in high street banks. Personal deposits of £5.8 billion were made in April, and this was double the average deposit made over the previous six months.

However, according to a study from the Nationwide only 28% of consumers think that it is a good idea to try and save money now, and this is because of the rises in bills and living costs that most households are trying to cope with. Whilst many think that saving is important only half of us put money aside on a regular basis, and only a quarter put money aside now and again whenever possible.

One official said: ‘Rising food and fuel costs are causing a significant dent in people’s wallets, meaning few people see themselves increasing the amount they save in six months’ time. Now is a particularly important time to save if consumers are to weather the storm. As the Governor of the Bank of England warns of harsher times, it’s worrying that while consumers have a will to save, they haven’t put this into action.’

Tags: high street banks, ISAs, Financial institutions, Offshore bank, savers, record, consumers

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