According Steve Urwin, senior marketing executive at Newcastle Building Society, peoples' money is safe in savings accounts run by mutual institutions, but they need to make sure they are getting the best deal.
He said: "The main savings concern consumers should have at present is ensuring that their money is working as hard as possible for them, especially in uncertain economic times."
Mr Urwin added that as the majority of funding for building societies comes from their customers, this means they are less reliant on borrowing from other financial institutions.
This means that people who put money in mutual savings accounts should be even more protected than those who opt for banks, he concluded.
According to research by Newcastle Building Society, 34 per cent of people would prefer to put their money in mutual savings accounts as they believe them to be the safest place.
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