The BSA says due to the Government’s need to borrow more money, rates with the National Savings & Investment scheme will become more competitive in an attempt to lure retail deposits and could discourage savers from putting money in societies.
Policy director Neil Johnson says: “Building societies are limited by legislation to fund lending through their retail deposits.
“If NS&I becomes more competitive, people may choose to save there and not with a mutual. This could affect societies’ ability to raise funds.”
