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Savings devalue 'when left at home'

By Sarah Engle, Thu 22 May 2008 - Published in Banking

Consumers that stash their cash at home are only decreasing the value of their savings, an expert has warned.

Senior marketing executive at Newcastle Building Society Steve Urwin said cash on its own does not earn any interest and therefore the effects of inflation will serve to decrease its value.

And as well is this, the risks posed by the potential of burglary are also a threat to savings kept at home.

"Not only will savers not see their money grow, they will actually eventually see it decrease in terms of relative value," Mr Urwin said.

According to a report from This is Money, building societies saw record high deposits in September last year, with savings and cash Isas being the most popular financial products on offer from the institutions.

Indeed net receipts at the institutions almost doubled compared to the same time one year before, reaching a total of £2.8 billion.