Banking crisis a 'wake-up call'
21 November 2007 10:22:23
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| Northern Rock problem acts as 'wake-up call' for savers everywhere |
Savers received a "wake-up call" about the safety of their deposits during the Northern Rock crisis, a report claims.
The survey for financial website MoneyExpert found up to 50,000 people a day now move their money to and from banks and building societies after the troubled lender received emergency funding from the Bank of England.
The site also said one in five people have moved their money to a high street bank after the crisis, believing it will be safer.
Up to 44% of people have now split their savings accounts after the problems at Northern Rock raised awareness of the risks of holding large amounts of money with one provider, it added.
The poll found that more people want to divide their money after finding compensation from one financial institution will not always cover all the amounts lost if a bank does go under.
Sean Gardner, chief executive of MoneyExpert, said: "Savers have taken the Northern Rock crisis as a wake-up call.
"The queues outside branches may have gone but the concerns about a re-run remain and many are reacting by ensuring that their savings are not all in one basket."
Copyright © PA Business 2007
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