Savings at a five-year high
More money was saved in the first three months of the year than has been for five years, new figures show.
Data from the Building Societies Association shows that UK residents saved almost exactly twice as much between January and April this year than they did last year, and when wholesale funds are added to retail funds building societies saw the nation's savings grow almost five times faster than in the same period of 2005.
"Savings inflows into building societies remain strong," said Adrian Coles, director general of the Building Societies Association.
"The first quarter's figure was over four times that of 2005 and the highest Q1 inflow since 2001.
"The slightly uncertain economic environment has seen many households turning to building societies for competitive products and a safe home for their savings."
And along with a general increase in savings, the figures for tax-free ISAs also grew.
Some £603 million was put into building society ISAs in March 2006, up from £499 million in March 2005.
"It is also notable that net inflows to ISAs were up by 20 per cent in March compared to a year ago," Mr Coles said.
ISAs are designed to encourage those on low incomes to save for their future. You can invest a maximum of £7,000 tax-free in your ISA every year, with a £3,000 cash lump sum, £3,000 in stocks and shares and £1,000 in insurance.
But this annual allowance expires at the end of the tax year - seeing people rush to use up their allocated amount towards the end of March and the first few days of April.
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