Consumers are becoming increasingly cautious with their savings following recent financial market volatility, according to one expert.
Jim Spowart, chairman of Peopleschampion.com, said in the wake of the Northern Rock crisis many people are looking for "safer havens" for their money, rather than higher rates of interest.
A survey of Northern Rock customers conducted by the firm found that the majority would look to place their money in 'safer' locations, particularly larger financial institutions.
"This might well be a temporary position, but I think it shows the importance of rebuilding consumer confidence. I don't think this is going to go away for a while though," Mr Spowart remarked.
In related news, savings among UK consumers reached record levels during the second quarter of the year, according to a report by Unbiased.co.uk.
The firm noted that savings reached a total of £47 billion during the second quarter.
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