Savers move their money following crisis at Northern Rock
At least 1.7 million people have moved their savings after the problems at Northern Rock to lessen the risk of having all their savings within the same financial organisation.
According to the price comparison website, MoneyExpert.com, at least 50,000 savers a day moving accounts. A third of these moved their savings after the Government announced it would guarantee only the first £35,000 of saver’ cash held at any one institution.
Sean Gardner of MoneyExpert.com, said the queues outside Northern Rock branches may have disappeared but the fears of a repeat has meant that many are being shrewd and not having their savings in one place.
However, 72% of savers that have left their money untouched said that they felt confident in doing so as their bank is a respected, well-known major high street bank.