Savers are putting away twice as much cash as they did last year as they make the most of rising rates.
The Building Societies Association (BSA) said that savings balances at building societies increased £8.4 billion in the three months to October — double the £4.2 billion that was saved in that period last year. It was also 80 per cent more than the £4.7 billion stashed away in the three months to July.
“It looks as if those who are able to are building their savings buffers, while rising interest rates and turbulence in other investment asset classes make cash savings attractive,” said Robin Fieth, the chief executive of the BSA.
Also, possibly not. Income and substitution effects. Weirdly, we do often see people increasing their cash savings as inflation rises. Because that future money is worth less, so more must be saved to smooth lifetime incomes.
Weird, but there we are.