Building societies have 'benefited from collapse of banks'
1.12.2008
The entire building society sector has seen an increase in custom as consumers have opted to transfer their funds from bank savings accounts into a mutual for financial peace of mind, Nationwide has claimed.
Following the collapse of Northern Rock, Bradford and Bingley and the Icelandic banks, as well as the takeover of HBOS by Lloyds TSB, the building society claimed it took in £2.6 billion in net receipts in the first half of the year.
Nationwide's savings director Matthew Carter said: "Consumers appreciate the strength and resilience of a well run modern mutual and how a low-risk approach can weather the current turbulent market conditions."
He referred to the building society as "a safe haven" for savings and encouraged people to continue making contributions to accounts through the current financial downturn.
This follows remarks made by the Association of British Insurers after Alistair Darling's pre-Budget report that the government must not forget to reinforce the importance of saving to Brits who have already begun to cut their contributions to savings accounts.
Following the collapse of Northern Rock, Bradford and Bingley and the Icelandic banks, as well as the takeover of HBOS by Lloyds TSB, the building society claimed it took in £2.6 billion in net receipts in the first half of the year.
Nationwide's savings director Matthew Carter said: "Consumers appreciate the strength and resilience of a well run modern mutual and how a low-risk approach can weather the current turbulent market conditions."
He referred to the building society as "a safe haven" for savings and encouraged people to continue making contributions to accounts through the current financial downturn.
This follows remarks made by the Association of British Insurers after Alistair Darling's pre-Budget report that the government must not forget to reinforce the importance of saving to Brits who have already begun to cut their contributions to savings accounts.