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Savers seek to return withdrawn cash

Northern Rock says savers were seeking to reinvest their money on Tuesday after the Government’s pledge to safeguard their savings calmed the mass panic seen over the weekend.

The bank said eight out of 10 calls on Tuesday morning concerned reinvesting cash.

Branches had been inundated with customers withdrawing their savings and closing accounts after news of the funding crisis broke on Thursday. Hundreds of savers lined up outside branches, with some queuing for more than seven hours to withdraw savings.

Speaking outside a Rock branch in the West End of London on Monday, painter Robert O’Rorke said his financial adviser told him to withdraw his savings. He said: “There has been so much hysteria surrounding Northern Rock, it is difficult not to follow and withdraw your savings. I am here today to do that. It is not going to help the bank but it is difficult not to be affected by the mass panic.”

Retired cab driver Terence O’Leary said: “I have been into the branch and withdrawn my savings. There was no problem and they processed my request in full. I was not going to withdraw my money when I heard the news but reports over the weekend made me concerned and I did not want to take the chance and leave my savings.”

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