Government plans to inject £37bn into RBS, Lloyds TSB and HBOS

Commenting on the Government's plans to inject up to £37bn into Royal Bank of Scotland (RBS), Lloyds TSB and HBOS, Kevin Mountford, head of banking at moneysupermarket.com, said: "This bail-out will no doubt change the shape of banking for years to come, but what will happen to consumers?

"Once we see a level of confidence and security returning to the market, there will start to be more interbank trading, which could trigger a reduction in savings rates.

"However the desire for retail inflow will remain strong so it is bank and building society mergers and acquisitions that presents a greater risk to interest rates as it is likely to reduce competition."