The British Bankers’ Association has revealed that savers withdrew a record amount from banks in January. £2.3 billion was withdrawn from savings accounts in the first month of 2009 – the largest amount since records began. The withdrawals are being attributed to savers looking for alternative, more fruitful methods of investment as they seek a greater return on the money, whilst a portion of the withdrawals were used to pay off debts .
David Dooks, statistics director at the British Bankers’ Association, said, ‘It is the biggest monthly fall in a decade. A fall in deposits in January reflects a tendency to draw on cash to pay off credit cards after Christmas, or to move into alternative financial products paying a higher return.’ Mr Dooks played down fears, however, that customers had lost faith in banks, pointing out that deposits increased in November and December.
A recent uSwitch survey suggested that a total of £9.5 billion would be withdrawn by savers over the next year as a result of the dwindling interest rates . Indeed, 4.3 million savers indicated they are planning to withdraw money from their accounts, despite the tax free status attached to their ISA savings accounts.
Savers Withdraw Record Sum from Banks
Financial Services > e-banking > Banking news
Savers Withdraw Record Sum from Banks
Wed, 25 Feb 2009
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