The BSA also said:
* Building societies had net inflows of £212m compared to net withdrawals of £299m in January 2005.
* Building Society net receipts to cash ISAs were £55m in January 2006, compared to £41m in January 2005.
* Building society gross advances amounted to £3,174m in January 2006, compared to £2,682m in January 2005.
* Net Advances were £718m in January 2006, versus £745m in January 2005.
* Approvals were £2,908m in January 2006 up from £2,037m in January 2005.
Adrian Coles, director-general of the BSA, said:
"January's savings inflows were the highest figures for that month since 2001. Normally credit card repayments and working off the Christmas "financial hangover" result in outflows from savings accounts in January. The figures confirm the emerging trend of strong savings which became apparent in the second half of 2005.
On the mortgage side, Mr Coles said: "Seasonally adjusted approvals (loans agreed but not yet made) were the highest since November 2003. This confirms other evidence that there has been a slight rally in the housing market. Building societies appear to be participating fully in this trend."
