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Savers distrustful of banks
29/04/2008 09:46:00
Consumers in the UK have become so cautious when dealing with banks that one in ten would now prefer to keep their money under their mattress than in a savings account, one financial expert has claimed.
According to the Newcastle Building Society, the number of people who would prefer to keep their cash at home has almost trebled from four per cent to 11 per cent.
The research showed that this figure is as high as 15 per cent in areas in the Midlands and Wales.
Wendy Lee, commercial director at Newcastle Building Society, said that the figures showed just how much the 'hype' surrounding the credit crunch and the collapse of Northern Rock had damaged public perception of financial institutions.
"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," she said.
Meanwhile, a recent survey from Mintel showed that over half of UK spenders are cutting back due to the economic uncertainty.
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