Cash Savings On The Up
High interest rates have seen savings account deposits increase ten times, while equity ISAs fall
30th October 2004
The rise in interest rates has stimulated savers to invest in cash savings accounts while leaving equity ISAs in the cold, according to a report by the Building Societies Association (BSA).
Deposits in cash savings accounts were up by a factor of 10 in September, compared to 12 months ago, while equity ISAs saw a net outflow for the first time since their introduction in 1999.
High interest rates have made savings accounts much more attractive than in recent years, especially given the sluggish performance of the stock market.
Although base rates are currently at 4.75%, some online savings account offer up to 7% AER, while figures of 5% and over are not uncommon.
Read More: Building Societies Association
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