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 Nigel Farage: Me vs Russell Brand on Question Time – he's got the chest hair but where are his ideas?
- 2 Harry Potter fans can apply to the Hogwarts-inspired College of Wizardry
- 3 Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
- 4 Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
- 5 Orange Wednesdays are no more
Weather bomb in pictures: Storms cuts power for tens of thousands – and snow is on the way
Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
Russell Brand was rendered speechless on Question Time by this man
Fury at Airbus after it hints the super-jumbo may be mothballed
Disgruntled RBS worker writes hilarious open letter to Russell Brand after anti-capitalist publicity stunt leaves him hungry
Nigel Farage defends Kerry Smith 'ch***y' comment: 'If you are going for a Chinese, what do you say you’re going for?'
Nigel Farage's approval rating hits 'record low' as popularity suffers in wake of Ukip sex scandal
Pakistan school attack live: Taliban kill at least 132 children in 'horrifying' massacre
Sony hack: Angelina Jolie branded 'seriously out of her mind' in further embarrassing leaked email saga
Panic Saturday: 13 million Britons spend £1.2bn – while 13 million others across the country live in poverty unable to afford food
iJobs Money & Business
$200 - $350 per annum: Carlton Senior Appointments: Managing Producer Office...
$125 - $225 per annum: Carlton Senior Appointments: San Fran - Investment Advi...
Up to £70,000 per annum + benefits: Sheridan Maine: Are you a qualified accoun...
Up to £65,000 per annum + benefits: Sheridan Maine: Are you a qualified accoun...