Bank of England's emergency funding to Northern Rock

Commenting on the Bank of England’s move to give emergency funding to Northern Rock, Kevin Mountford, head of savings at moneysupermarket.com, said: “This is not a time for savers to panic and withdraw their cash from Northern Rock. The Bank of England has been willing to step in because Northern Rock has a good business model and is at no risk of insolvency.

"No matter who your savings are with though, it is always a good idea to have no more than £35,000 with any one bank or building society. Spreading your savings helps protect most of your cash under the Financial Services Compensation Scheme.”