UK Residents Afraid of Losing Savings
25/09/2008
Nearly half of all UK residents lack confidence in the security of their savings. A survey carried out by Populus of behalf of The Times newspaper shows that 44% of respondents are less certain about the security of their bank deposits, and nearly 50% are depositing less money into savings accounts.
David Lourie, an analyst at the Good Business consultancy, said: "Consumers are starting to make noises about having less confidence in the financial system, in the financial services sector, and they are not necessarily happy with their money being in a bank.
"If only a small proportion of the 44 per cent who say they are worried act on their fears, it could have pretty big consequences and compound some of the things we have seeing at the moment."
The survey was conducted close to the first anniversary of Northern Rock's collapse. It also follows hot on the heels of the Lloyds-HBOS takeover. Andy Hornby, chief executive of HBOS, admitted in an email to staff that one of the reasons he accepted Lloyds TSB's takeover bid was because the falling share price of HBOS had caused concerns among customers.
According to The Times, the findings of the survey could indicate "the potential for a run on a bank if the financial turmoil of the past few weeks continues."
David Lourie, an analyst at the Good Business consultancy, said: "Consumers are starting to make noises about having less confidence in the financial system, in the financial services sector, and they are not necessarily happy with their money being in a bank.
"If only a small proportion of the 44 per cent who say they are worried act on their fears, it could have pretty big consequences and compound some of the things we have seeing at the moment."
The survey was conducted close to the first anniversary of Northern Rock's collapse. It also follows hot on the heels of the Lloyds-HBOS takeover. Andy Hornby, chief executive of HBOS, admitted in an email to staff that one of the reasons he accepted Lloyds TSB's takeover bid was because the falling share price of HBOS had caused concerns among customers.
According to The Times, the findings of the survey could indicate "the potential for a run on a bank if the financial turmoil of the past few weeks continues."
