Savers switching and spreading their cash
New research from Abbey Savings has found that over 2.3 million savers have already taken steps to protect their cash by transferring their savings to a provider viewed as financially strong, or spreading their cash amongst a number of different providers.
Abbey's research reveals that 1.5 million people (13 per cent of the 12.1 million who have switched savings accounts) have moved their savings in order to spread them between different providers, while a further 839,426 (7 per cent) have switched their provider based on the company's reputation for financial strength.
Following the announcement that the Financial Services Compensation Scheme (FSCS) has been increased to £50,000, Abbey's research reveals that eight per cent of all savers (3.3 million people) have more than £50,000 in savings, with the average saver sitting on a deposit of £15,117.
Reza Attar-Zadeh, Director of Savings and Investments at Abbey: "It's clear that there is a flight to safety as savers are certainly thinking more carefully about where they place their money, and choosing institutions based on their financial strength. Abbey has seen a marked increased in savings inflows in recent weeks, up 270% in our branches network alone, due to our strong financial position, backed by the financial strength of a top 10 global bank, Santander"
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