Building Societies Association

Building Societies Association (BSA) figures has revealed that consumers are opting for repayments of debts rather than saving on lower rate of interest. As stated by BSA, saving imbalances lead to fall of £ 929 million in October compared to rise of £545 million a year ago when interest rate stood at 4.5%.

Excluding any interest rate building society saving account has £ 1,240 million that was withdrawn from the accounts earlier in October compared to a net receipt of £115 million earlier year. Director General at the BSA Adrian Coles commentated on figure “There is less inducement for the people to save in the banks at current low level and therefore many opt debt repayment.”
 
“This reflects constant reduction and creates saving imbalance at building society this month. Apart from this deposit takers and building society faces heightened competition from the government guarantee institutes which create further distortion” added Mr. Coles.