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This week's grim warning that Britain will suffer the worst recession of any advanced nation will have fuelled some people's fears that we could be heading for an Iceland-style meltdown. In that country, the government has been ousted as a result of the global economic crisis, following weeks of angry protests on the streets of Reykjavik.
Wednesday's gloomy International Monetary Fund forecast came days after Guardian Money and other media outlets highlighted how some nervous UK savers with cash in Irish banks have been trying to withdraw their money, amid suggestions that Ireland's economy and banking system are in an even worse state than ours. Now some will be wondering whether it is Britain that is the real basket case.
So, if you fear that UK plc could hit the skids in a serious way, and you're worried about where to put your cash, what are the really safe bets?
For copper-bottomed safety, make a beeline for National Savings & Investments, which is backed by the Treasury and advertises itself as offering "100% security for your money", however much you invest.
That safety arguably comes at the expense of a decent return - interest rates on many National Savings products are not great - but some people will be more worried about their cash being totally secure than about earning a good rate of interest right now.
You might feel you would have to be very nervous indeed to sign up for its Easy Access Savings Account, which currently pays between 0.45% interest (for deposits of between £100 and £9,999) and 1.2% (£50,000-plus). It comes with a cash card that lets you pay in money at post offices and make withdrawals from ATMs. NS&I's cash Isa now pays 1.4%. The rates on its two- and five-year fixed interest savings certificates, with a guaranteed tax-free return, this month fell to 1.9% and 2.35% respectively - equivalent to 3.17% or 3.92% gross for higher-rate taxpayers.
The other "safest bank in Britain" is state-owned Northern Rock, which was taken into "temporary public ownership" a year ago and will probably be owned by Joe Public for years. It is offering one-, two- and five-year fixed-rate savings bonds paying 3.4%, 3.85% and 3.85% gross respectively. The minimum opening balance in all cases is £1. Its instant access cash Isa pays 2.5% and its fixed-rate Isas pay 3.5%.
For those with a little more to put away, Northern Rock's Branch Saver Issue 2 pays 3% and offers access to your funds via a passbook. The minimum investment is a chunky £2,500, and the minimum withdrawal amount is £250. You are allowed as many charge-free withdrawals as you like.
If safety is your number one priority, then also consider UK banks that have been bailed out by the taxpayer: the new Lloyds Banking Group (including Lloyds TSB, the Halifax, Bank of Scotland and Birmingham Midshires) in which the government holds a 44% stake, and Royal Bank of Scotland, which includes NatWest and is 70% owned by the state. Those banks will not be allowed to go under.
Halifax was this week topping the fixed-rate Isa best-buy table (see below), and one of its best rates is the 5% on offer for its Regular Saver account, where customers can pay in between £25 and £500 each month. Meanwhile, its online and phone account Web Saver Extra pays 3%.
Some would say that, safety-wise, you cannot go too far wrong with a building society, bearing in mind the sector can boast that not one of its savers has lost a penny since at least 1945.
Best-buy building society accounts include the Yorkshire's Internet Saver, paying 3.75% from £1, Barnsley Building Society's e-save, paying the same rate, and West Bromwich's High Income Over 65s Notice Account operated by post and phone, which offers a rate of 4%-plus, but is only available to those aged at least 65. On the latter account, withdrawals are permitted with 90 days notice, the minimum investment is £5,000 and interest is paid monthly.
• Follow the Path to safety in the Observer's Cash section, which tomorrow will look at tackling debt
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