Thursday 23rd August 2007
Savings accounts could offer a "safe haven" for funds previously intended to be spent on investments, according to Sainsburys Bank.
The financial services provider suggests that savings accounts could offer greater short-term security until the current stock market volatility ends.
Meanwhile, a spokesperson for the firm states that there are currently more shares being sold than bought - indicating a lack of confidence in investments.
"A lot of the increase in money flowing into this [savings] account is from investors moving from a stock market-based investment type product into more of a safe haven for their cash," reveals head of savings Peter Wood.
He adds that the number of shares being sold is currently "more than double the number being bought".
While he notes that the savings account market is already competitive, Mr Wood predicts that deals with more attractive interest rates could appear as providers attempt to attract high-rate investors.
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