As I turn 23 this month and my present young person's savings account with Brittania reverts to a standard savings account with minimal interest, I have been looking at alternatives. I had more or less decided on the Bradford & Bingley Internet Saver at a rate of 6.5% - but then the news broke of their rights issues and potential investors pulling out.

Is it still a good idea to save with B&B? Would any investement I made into this type of account be covered under the FSA compensation scheme?

Yes it is safe for saving!

Private equity backed out the other day, now they have to ask current share holders for extra money. Right issue!

FSA will cover your money depending on the amount you have in the very unlikey instance the bank goes bust.

Mozy

I have quite a hefty sum tied in to an esavings online fixed rate account. In your opinion if B&B get into serious trouble will they be bailed out by the Labour Government?

As far as I can see, your savings (and mine!) will be covered by the Financial Services Compensation Scheme at 100% up to £35k deposited. However, one of the reasons I recently opened this account was that the rate is offered with instant access (no penalty for withdrawal). I'm not sure how long it would take to be paid out by the scheme, and my biggest concern would be not having access to the funds while legal battles get played out in the Courts.

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I'm just another punter, not an expert!

I too have just openned an account with B&B as I have inherited some money. I opened it with £1000 with the intention of putting the full £35k into it. I feel uneasy at doing so now.

Unsettling isn't it? Once upon a time you could put money into banks and building societies without a care in the world. Now it seems that you need to be careful.

The FSA have responded to my query over how long it might take to get paid out by the compensation scheme effectively saying "it'll take as long as it takes". I'm considering pulling my money straight out again and putting it with Birmingham Midhsires at 6.52%, easy access internet account. At least they're not being linked with potentially going bust. Yet!

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I'm just another punter, not an expert!

Im probably talking a load of twaddle now as I know nothing at all about anything financial but with replies like that from the FSA, its no suprise people withdraw there money asap which I presume makes matters much worst for the crippled Building Society. I will draw my £1000 out too and put it somewhere else. Thanks for the Birmingham Midshires tip.