Savers become increasingly cautious

May, 22, 2008

Consumers are growing increasingly cautious about their savings due to a number of factors, according to Newcastle Building Society.

Steve Urwin, senior marketing executive at the financial services provider, states that the credit crunch has had a "huge impact" on consumer confidence, as did the events surrounding the Northern Rock crisis.

"However, even prior to the events of last summer, stock market performance was uncertain and so we had already seen investors moving away from any high-risk products," he adds.

Saving for your children?

As such, Mr Urwin notes that fixed-rate bonds have proved increasingly popular among savers due to their guaranteed rate for a fixed period of time.

He suggests that the security and stability that such products offer may appeal to consumers in a time of economic uncertainty.

A study carried out by the firm in recent months suggests that one in ten individuals now prefers to stash their cash under their mattress due to concerns over banking.

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