Savings held by mutuals increased in November

People looking to access the best savings rates will be interested to hear that savings balances held by mutuals in November increased by £0.6 billion, following a significant decrease of £1.1 billion in the previous month.

According to the Building Societies Association BSA, when interest credited to the accounts held by mutuals is excluded, it reveals that mutuals had a net receipt of £0.4 billion in November.

Adrian Coles, director-general of the BSA, said: "Savings flows can be quite variable on a month to month basis, and though it is pleasing to see balances held at mutuals increase in November it remains to be seen whether this is the beginning of a sustained trend."

He added that 2011 is shaping up to be a difficult year for those looking to access the best savings rates as household finances remain tight and the Bank of England base rate is likely to remain at its historic low for much of the year.

Recent research carried out by Halifax found that parents are still determined to save for their children's future despite the government ending its contributions to the Child Trust Fund.
 

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2011-01-05 13:00:20 © Moneyextra.com