Brits keep £7bn at home

Research carried out by the Financial Services Compensation Scheme FSCS has revealed that Brits are keeping around £7 billion in cash in their homes.

The research found that poor savings interest rates are a factor encouraging people to save at home, with 32 per cent saying they see no point in depositing money with a bank or building society with interest rates running at a historically low level.

Four per cent of respondents admitted to keeping over £1,000 at home, with one per cent stashing £10,000 in the house.
The FSCS recently announced new regulations which are designed to protect savers should they lose money when a bank or building society goes under.

Compensation limits have been increased from £50,000 to £85,000 to comply with the Deposit Guarantee Schemes Directive and faster pay-out rules have been implemented.

Mark Neale, chief executive of the FSCS, said: "It is vital that savers know their money is protected up to the new limit of £85,000."
 

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2011-01-07 13:29:54 © Moneyextra.com