Seeking a safe haven

Published Date: 08 October 2008 In these uncertain times, Jeremy Gates finds out the best ways to protect your savings. The credit crunch is unnerving small savers, who are sitting on £2 trillion of deposits at banks and building societies – and switching billions into what they see as safer havens. Northern Rock, where savers got a Treasury-backed guarantee on all deposits when the lender was rescued by Government last year, is withdrawing some accounts to new customers and reducing rates on others to remain within its stated target of 1.5% share of the savings market. Geoff Tresman, chairman of financial advisor Punter Southall Financial Management, says Northern Rock's move was to be expected. "Many people are fearful their money will be used to prop up the banks," Tresman says. "But the reality is that deposits with... [read full story]