Have you just opened a new savings account? According to this morning's papers, money is pouring into accounts seen by savers as safe havens for their cash. Northern Rock has seen such an inflow that it was forced to pull several accounts so it didn't break a commitment to hold no more than 1.5% of the nation's savings.
It's not clear where the money is coming from, but with household budgets being squeezed by rising bills it seems likely it is cash that is being moved, rather than fresh savings. And it seems unlikely that all of the people moving their money stood to lose out if their bank went under.
The government currently guarantees up to £35,000 of your savings with each of the UK's banks and building societies, and this covers around 95% of accounts. The level is expected to be increased to £50,000 this month, which would leave just 2%-3% of accounts exposed to a bank failure. Most people's money is protected completely by the guarantee. So why move it?
Switching cash to the nationalised Northern Rock and the government-backed National Savings & Investments seems to make sense - it means you will never find yourself falling victim to a bank failure and will never have to fill in a form applying for compensation and waiting who knows how long to get your money back.
But why switch to an Irish bank, unless you have more than £50,000 in your account? Sure, the deposits are 100% guaranteed by the government, but you would still have to go through the process of reclaiming your money if the worst did happen. Do you think the guarantee makes failure less likely though?
Or is it that all this talk of savings has made you realise you could be getting a better interest rate on your cash? Anglo Irish Bank's Easy Access Account is among the best-buy no-notice accounts listed by Moneyfacts, while the Post Office's Instant Saver may not have a top interest rate but it's better than the miserable amount some savers have been earning.
Have you moved your money in recent days, and if so why? And where have you chosen to stash it?
