Savers 'spurning banks'
Wednesday 22 August 2012
The recent spate of banking scandals, such as Libor fixing, coupled with a lack of trust and chronic low interest rates mean that savers are turning their backs on traditional high street banks, a survey suggests.
Seven out of ten Britons surveyed by peer-to-peer lender Funding Circle said they would much rather invest with a British business than put their money in a savings deposit account, paying record low rates of interest. Funding Circle says it has seen an 89 per cent surge in people joining since the Libor-fixing scandal broke in June.
Samir Desai, CEO and co-founder of Funding Circle, said this reflected Britons' malaise with the banks and poor savings rates: "The downturn and endless tales of bad behaviour by the banks has ignited a passion in UK savers. It's not about abandoning the banks completely but rather taking control and looking for smart alternatives."
However, savers, looking to invest in business, have been warned recently by the City watchdog, the Financial Services Authority, that this is a far-from-safe place for hard-earned cash. The FSA warned investors that so-called crowdfunding schemes, where businesses pitch their product or idea to attract start-up capital, are complex and high risk.
Meanwhile, the campaign group Save our Savers has found Britons are saving a lower proportion of their incomes than nearly every other European country.
- 1 Home Office says Nigerian asylum-seeker can’t be a lesbian as she’s got children
- 2 What happens to your body when you give up sugar?
- 3 Drugs Live cannabis trial: Hash is less harmful than any other drug, expert claims
- 4 Turkish Airlines flight TK 726 crash-lands on Nepal runway amid dense fog
- 5 Apple and Google users being spied on for a decade because of 'Freak' security flaw
Durham Free School: 'Creationism taught at' free school facing closure
Nearly 100,000 of Britain's poorest children go hungry after parents' benefits are cut
Ukip would cut billions from Scottish budget to fund English tax cuts
End of the licence fee: BBC to back radical overhaul of how it is funded
Ukraine crisis: Top Chinese diplomat backs Putin and says West should 'abandon zero-sum mentality'
Boris Nemtsov shot dead: Outspoken Putin critic who had expressed fears for his life is killed near the Kremlin
iJobs Money & Business
£25000 - £30000 per annum + benefits: Ashdown Group: A global leader operating...
Voluntary post, reasonable expenses reimbursed: Reach Volunteering: Would you ...
£36,000 - £40,000: Christine McCleave: Are you looking for a new opportunity a...
£15000 - £18000 per annum: Recruitment Genius: This is a great opportunity for...