Member Article

One in ten prefer to stash cash under their mattress

Savers are much more cautious now than a year ago, with more than one in ten people thinking their money would be safest under the mattress, reveals new research from Newcastle Building Society. In light of the credit crunch, the proportion of people preferring to stash their cash at home has almost trebled over the last year, from 4% to 11%. However, more savers would prefer to invest in building societies than anywhere else, with over a third (34%) believing them to be the safest places.

The past 12 months have seen the number of people choosing to invest in either banks or building societies decline by 17%, according to the research. A year ago, almost three quarters of people surveyed would have considered banks (28%) or building societies (46%) to be the safest places to invest their money.

Wendy Lee, Commercial Director at Newcastle Building Society, said: “These findings are a stark sign of the times, but they are also exacerbated by the hype surrounding the ‘credit crunch’. With some attractive savings products available, you might think people are barmy to stash their cash at home. Unfortunately, some savers now have an exaggerated view that investing their money with a building society or bank can be a risky business, which is not the case.

“People should speak to their savings provider if they are looking to invest or if they are concerned about existing investments – in the vast majority of cases people will be reassured.”

Confidence in banks has declined by 5% over the last 12 months, with less than a quarter of savers (23%) considering them the safest place to invest their money. And the number of people who are unsure about the safest place to put their money has almost doubled to 13%. An additional 19% would choose not to invest with traditional financial institutions at all.

This was posted in Bdaily's Members' News section by Ruth Mitchell .