Savers have begun moving their cash to safer havens this week despite reassurance from the Government that they should leave their money where it is.

National Savings & Investments, which is fully backed by the Government, said it had seen an increase in deposits “over and above what it would normally expect” in the past few days, as the crisis in the banking sector has unfolded. NS&I, which offers full protection with no maximum compensation limit, also experienced a surge in applications after the run on Northern Rock last September.

The Financial Services Compensation Scheme (FSCS) said the number of calls from savers wanting to know whether their money is covered if their bank goes bust has also risen in response to the turmoil, despite assurances from the Government and banks that their money is safe.

Experts said the collapse of Lehman Brothers and the takeover of HBOS by Lloyds TSB had caused a “flight to safety” among savers. Kevin Mount-ford, head of savings at moneysuper-market.com, the price comparison website, said: “The reality is that people’s money is safe, but this is not about reality – it is about confidence. Perception rules and if people are concerned about their money, they will take it out, move it elsewhere or stick it under the mattress.”

Although Lloyds TSB’s takeover of HBOS will protect savers from the bank collapsing, customers were yesterday still bombarding websites and online forums with questions about whether their money is safe.

Following the run on Northern Rock last September, financial advisers told savers to reorganise their finances so that they have no more than the maximum compensation limit of £35,000 for deposits in any one institution. Building societies, traditionally considered safer than banks, experienced a surge in applications, alongside NS&I and Northern Rock, after the bank was nationalised.

Mark Dampier, of Hargreaves Lansdown, an independent financial adviser, said: “The irony is that once Northern Rock was nationalised, everyone began moving their money back there, as deposits are fully protected and so you don’t have to worry about the £35,000 limit.”

The recent spate of takeovers between banks and building societies has reignited doubts over the safety of deposits, as in some cases, a takeover could leave a customer with savings in both institutions exceeding the £35,000 limit, because of restrictions on the way the limit is applied.

Under current rules, the £35,000 compensation limit is per authorised institution, not per account. However, as many banks and building societies are subsidiaries of larger groups, some savers, believing they are covered because they have less than £35,000 in separate banks, could find that they are not protected if those banks are owned by the same parent company.

HBOS and Lloyds TSB, which have 39 million customers between them, said they were in discussions about whether to register the two brand names separately. If they do not, savers with more than £35,000 spread between the two banks may be best advised to find a new home for their cash.

Q&A: where is the safest place to keep my money

Money Central: 10 ways to save without even noticing