22 April 2009
Saffron Building Society comment on Budget
Following the Budget announcement, Saffron Building Society, the regional mutual serving East Anglia, is glad that savers have been given a boost by Alistair Darling's speech.
Saffron has seen a notable increase in numbers of savers since the beginning of 2008, and Chief Executive Andy Golding is pleased that those who have put aside money have been rewarded by today's announcements.
"The unprecedented fall in Bank of England Base Rate has been to the detriment of savers who are no longer enjoying profitable rates of interest on their accounts. As a regional mutual whose membership is made up predominantly of savers, we are acutely aware of the impact of low saving interest rates and feel that it is time there was more support for our savers - particularly those who rely on their savings interest for income".
The increase in the annual investment limit for ISAs to £10,200, up to £5,100 of which can be saved in cash, is good news for savers.
"We welcome an increase in ISA allowance" said Andy. "We fully support any incentives to save and having a larger allowance to protect from tax. Rates will not stay low forever and, once they rise, those who have diligently built up their ISAs will be duly rewarded. It is, however, disappointing that the under 50's won't be able to take advantage of the increased allowance until April 2010".
"We are, of course, glad that the ISA allowance and other measures are coming in to support those approaching or drawing a pension. We have many long-serving customers who have saved all their lives, who are now struggling to make ends meet. Their savings are not giving the return they have expected, and many of them are experiencing high levels of personal inflation. The maintenance of the Winter Fuel allowance and increase in state pension is a good start, and I hope it will help alleviate some of the financial pressures on many of our members"
Saffron's serves a number of smaller, rural communities with branches in local market towns; some of which have seen shop closures and the withdrawal of facilities as a result of the economic downturn.
"This is particularly difficult for older people in these communities" Andy explained. "We are committed to maintaining our branch network and the availability of our services in smaller communities as we feel this to be a vital aspect of the role of a mutual"
"In this year's Budget, The Government recognises that mutuals offer the customer greater choice in how they manage their money, as well as being of great benefit to local communities. The Budget report also states that mutuals command a high degree of trust amongst consumers, which is clearly important in the current climate. This is certainly the case with Saffron. Our recent Annual Members' Survey states that 96% of respondents trust us to treat them fairly".
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