Last updated 13:35, Thursday, 01 May 2008

The number of people who think the best place to keep their money is under their mattress has nearly trebled during the past year.

Sleep on it: Only 57 per cent of those questioned felt their money was safest in a bank or building society, down from 74 per cent a year ago

Around 11 per cent of people said they now thought their money was safest under their mattress, compared with just four per cent 12 months ago, according to Newcastle Building Society.

The research found that the crisis at Northern Rock and the credit crunch has caused people’s confidence in banks and building societies to dive.

Just 57 per cent of people said they now thought their money was safest with one of these institutions, down from 74 per cent a year ago.

At the same time the number of people who claim they do not know where their money is safest has nearly doubled to 13 per cent.

Wendy Lee, commercial director at Newcastle Building Society, said: “These findings are a stark sign of the times, but they are also exacerbated by the hype surrounding the credit crunch.

“With some attractive savings products available, you might think people are barmy to stash their cash at home.

“Unfortunately, some savers now have an exaggerated view that investing their money with a building society or bank can be a risky business, which is not the case.”