You have to decide on your risk aversion level. Lets face it there is risk in everything - hence the queue's for Northern Rock depositors. There are licenced deposit takers. Businesses licensed to take your money and pay you a return, ie: bank sna d buildig societies. You can invest in the stock market at various levels of risk. However the one that interests me is that given the licensed deposit takers - ie: the banks are not lending, and not paying interest of any meaningful amount - people with cash are now trying to match up with people who want cash direct. IOnternet sites exist for community lending schemes. Or you can now go ditrect to the commercial finance brokers - these are the guys who act for businesses looking for money. Cer6tainly I wouldn settle for 0.5% from a bank!