Investors choosing safety over returns

| August 29, 2007 | 0 Comments

Research by Sainsbury’s Bank has noted a change amongst savers who are taking advantage of high interest savings accounts. The bank highlighted that investors are opting for safety over returns due to the latest turmoil on the stock markets.

The bank defined “high interest” as a rate above 6% and the research showed that between August 6th and August 19th 2007, such savings accounts recorded a 42% increase in activity. The bank considers that the increase can be directly attributed to the recent instability of the stock markets.

In addition, a survey by the Post Office claims that 1 in 4 UK adults are not saving any money at all. 25% of respondents said they had too many debts to pay off and were, therefore, unable to put any money aside. The research also highlights that approximately 30% of the people who do save, do not save monthly.

The most popular reason given for saving was to fund a holiday, however nearly 50% of those aged between 55 and 64 indicated that were saving for retirement.

Britons are saving less of their income than at any time in the last 50 years according to figures from the Office for National Statistics.

Comments (0)

Trackback URL | Comments RSS Feed

There are no comments yet. Why not be the first to speak your mind.

Leave a Reply

Visited 1144 times, 2 so far today