Savers Withdraw Money At Fastest Ever Rate, Says Bank

A RECORD £4.6billion net was taken out of banks and building societies in May as people raided pandemic-years savings to pay ballooning bills.

- Geoff Ho

Households had deposited a net £3.7bn into savings in April - but that was more than reversed last month.

The Bank of England said net withdrawals from interest-bearing accounts rocketed from £5.4bn to £11.4bn.

For non-interest bearing accounts, there were net withdrawals of £3.3bn, the seventh consecutive month of people taking money out. That compares to net withdrawals of £4.2bn in April. Meanwhile, net flows into ISAs plunged from a record high of £8.9bn in April to £3.3bn in May.