BSA reports increase in mutual savings

The volume of savings held by mutual institutions rose by £929 million during April 2010, it has been reported.

According to the Building Societies Association BSA, this represented an improvement on the previous month's increase of £534 million.

After the exclusion of interest credited to accounts, mutuals had a net receipt of £537 million in April.

BSA director-general Adrian Coles claimed that mutuals have been able to attract savers by offering competitive rates, especially on popular Isa products.

"However, maintaining positive inflows will remain a challenge while the bank rate remains low, as savers may seek higher returns elsewhere, " he added,

Mr Coles noted that some consumers may simply choose to repay debts rather than save if the Bank of England continues to freeze interest rates at 0.5 per cent.

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2010-06-03 08:38:57 © Moneyextra.com