Released on: November 25, 2007, 10:43 pm

Press Release Author: Gracy

Industry: Financial

Press Release Summary: The credit squeeze is leading to higher savings rate. Some of
the building societies are offering attractive rates to attract more deposits.

Press Release Body: London (Loans-Bazaar) November 22, 2007: The credit squeeze has
upped the saving rates that many of the building societies were offering earlier.
For the first time in last six years, you can now earn as much as 7 per cent on your
savings.

Recently, there has been an increase in the cost of lending between banks. This has
pushed the mortgage rates and is now leading to higher savings due to attractive
savings rates. Building societies attracted exceptional levels of savings investment
in the last month.

According to the latest figures from the Building Societies Association, more than
£3,000m was invested in building societies in October 2007. The corresponding figure
in October 2006 was £772m that is almost four times lower.
Rachel Thrussell of Moneyfacts said: "Lenders are looking for alternative ways to
fund their mortgage lending, and it seems as if increasing deposits has been the
first port of call for many. A return of 7 per cent is quite outstanding."
Commenting on the development, Adrian Coles, director-general of the Building
Societies Association said: \"It seems that the majority of these deposits are funds
withdrawn from the Northern Rock bank, with the attractive savings products offered
by building societies continuing to appeal to customers looking for the best home
for their money.\"

Building societies offer personal loans, mortgages on lower costs. There are more
than 59 building societies in the UK.

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