Building societies continue to be a “safe haven” for savings

Building societies look set to survive any downturn this year and continue to be a “safe haven” for consumer savings, it has been revealed.

The Building Societies Association (BSA) found that 70 per cent of its bosses are optimistic about the year ahead, following eight months of record level savings inflows.

In February, the organisation announced net receipts of £1,350 million, up from £782 million in the same month of 2007.

Commenting on the study, BSA director general Adrian Coles explained that building societies rely on retail deposits rather than the wholesale money markets, making them better positioned to withstand any economic downturn.

“As such savers have been turning to building societies as a safe haven for their money,” he claimed.

Although the housing market is set to slow during 2008, building society chief executives have expressed confidence that the institutions will weather the storm.

Mr Coles said: “[They] are sure that the benefits of building societies’ competitive products and excellent service will continue to appeal to consumers.”

© Adfero Ltd

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