Cash stashed at home will ‘drop in value’

Savers who prefer to keep their money stashed away at home rather than in a savings account are missing out on interest and will only see their funds drop in value over time, the Newcastle Building Society has said.

The senior marketing executive at the building society, Steve Urwin, noted that not only will people not be earning interest on their savings but that the effects of inflation mean that money sitting at home will continue to “decrease in terms of relative value”.

Mr Urwin also pointed out the security risks of leaving money at home, since it is a prime target for burglars.

According to the Daily Mail building societies saw deposits hit a record high last September, with the biggest demand being for savings accounts and cash Isas.

The Newcastle Building Society said that this trend is an indication that people are becoming more cautious with their savings as they start to feel the effects of the credit crunch.

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