A new savings account provider offering high interest is NOT protected by any compensation scheme, which means if it went bust savers would be likely to lose their cash.
The long-term retired are having to "knock lumps" out of their nest eggs just to get by, pensioners' groups warned today, as a report found saving pots for the over-75s have almost halved in the last two years.
A further £50 billion was injected into the economy today as the UK struggles to pull out of its double-dip recession and the eurozone debt crisis intensifies.
Record low interest rates and multi-billion-pound emergency support measures from the Bank of England are costing savers nearly £18 billion a year, research showed today.
Banks will be forced to ring-fence savers' cash from their risky casino-style investment arms to protect deposits and avoid a run like that which brought down Northern Rock in 2007.
Nationwide savings customers should sign up to a free service to make sure they're alerted when their rate drops, or in the less likely event the building society boosts returns.