Savers 'depositing cash in safe havens'

Monday, June 7th 2010

There has been a large increase in the amount of cash deposits made over the past three months, as savers look to protect their assets by depositing them in safe havens.

This is the conclusion of new research from the Fair Investment Company, which revealed there has been a 275 per cent jump in deposits during the last quarter.

Director at the firm David Doulton explained savers are reacting to the current situation on the markets "where the FTSE is bouncing up and down and the base rate is stuck at 0.5 per cent".

"Many are looking to lock their money into a competitive, relatively low risk fixed rate cash plan," he stated, adding investors are acting fast to ensure their money does not lose any more of its value.

The study comes after a similar investigation from Fairinvestment.co.uk, which revealed 86 per cent of Britons are currently looking at the best ways of getting the most out of their savings, up from 67 per cent six months previously.