Record Money: Consumers Are Seeking A Save Haven

Oct 2 2008 Daily Record

BRITISH savers are going continental in a bid to find a safe home for their money.

Bank bosses say that people are shifting their cash to providers they consider to be strong - or that are backed with Government guarantees.

Savers are flocking to banks such as Lloyds TSB and Abbey - which is owned by Spanish giant Santander - as well as to the Treasury-backed National Savings &Investments. And the Irish government's pledge that it would guarantee all money saved with an Irish institution for two years is also thought to be causing a flow of money to Irish banks.

ABank of Ireland spokeswoman said the bank was seeing a "very, very steady" increase in people contacting its call centres from Northern Ireland.

Savings products at the Post Office are backed by the Bank of Ireland, meaning that savers will benefit from the Irish government's guarantee.

APost Office spokeswoman said: "Since last week, when the Government first changed the amount that was protected - we have seen an increase (in savings customers)."

National Savings & Investments, which is backed by a Government guarantee, has also seen an increase in interest. A spokeswoman said: "We have received a higher volume of calls than usual."