24 April 2008
Consumers opt to save their cash during times of financial turmoil, instead of spending it, one company has suggested.
Usually, people "stop and think" when economic matters look bleak, The Children's Mutual noted, as they realise a back-up is required and this is something that could interest those with current accounts.
During times of prosperity individuals are more likely to "keep spending" but this trend reverses as they look to save in negative periods, chief executive David White asserted.
He added that the number of families opening up child trust funds (CTFs) has actually risen in the first few months of the year.
Such moves go against the grain of turbulent new stories that proliferate during the credit crunch, Mr White said.
He remarked: "In times of negative press around financial things, people actually consider savings much more than they do when everything seems fantastic."
When a CTF account is created, it is credited with a £250 voucher from HM Revenue & Customs.
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