Savings accounts see fewer withdrawals amid inflation fears

Monday, 16 May 2011 03:17

Britons are making fewer withdrawals from their savings accounts as they put more away for a rainy day, reports BM Savings.

The financial services provider's Saving Britain research is published quarterly and detects fears relating to inflation in its latest instalment.

John Bianco, head of products at BM Savings, says: "There are many great rates at the moment for those looking to get the most out of their savings pot, including our inflation tracker bonds for those concerned about the effect of inflation on their savings."

The firm's inflation rate bonds are based on the annual rate of inflation in April on the retail prices index, helping to prevent erosion of the real-terms value of savings.

However, different age groups may be interested in different products; while 69 per cent of over-65s are currently concerned about inflation, only 30 per cent of 18 to 24-year-olds are.

Mr Bianco suggests that saving is also a good way to make sure there is enough in the budget for a summer holiday, which could appeal more to younger accountholders.

Use the Myfinances.co.uk comparison tools to find the best deal on a savings account

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