There has been a record level of savings in September, figures from the Building Societies Association (BSA) show.

With net receipts of £2.8 billion in September, the figure is three times the amount deposited over the same time last year.

Cash Isa receipts totalled £68 million, building society gross advances reached £4,230 million and net advances amounted to £825 million.

Director general of the BSA Adrian Coles said: "With savers searching for the best home for their money, the wide range of attractive savings products that societies offer proved to be very competitive."

He said the Northern Rock crisis will have been a significant factor for the increase as savers deposited their funds in new accounts.

Mortgage lending was down from last year's figures and Mr Coles explained that increased interest rates have led to tightening lending criteria. However the figures are higher than the previous two months.

Total gross mortgage lending in September was down by 12 per cent since the previous month, reports the Council of Mortgage Lenders.

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