Net receipts into building societies were £1,595m in February, representing the highest February net receipt on record and an increase of 18% over February 2008, according to the Building Societies Association (BSA).
Building societies had a net receipt of £1,595m in February 2009 compared to £1,353m the previous year. BSA members had a net withdrawal of £108m from cash ISAs in February 2009, compared to a net receipt of £130m the same month in 2008.
"The record February net receipt of £1.6bn shows that building societies' attractive savings products are helping them to compete for deposits," says Brian Morris, head of savings policy at the BSA.
He adds: "Despite the Bank Rate being so low people are still keen to save, probably in response to the uncertain economic outlook and reduced job security."
"The low levels of lending by building societies come as no surprise in view of the depressed levels of activity in the housing market," says Paul Broadhead, head of mortgage policy at the BSA.
"With the BSA's Property Tracker survey showing that potential buyers remain concerned over their job prospects and perceived problems securing a mortgage, it is hard to see confidence returning to the property market for some time to come."IFAonline
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