The days of squirreling money away under mattresses have long since been consigned to the history books. For centuries now, banks have acted under licence from governments to provide a number of financial services, both to businesses and the general public alike.

Even in recent years though there may still have been a mild undercurrent of mistrust relating to banks among the older generation, due perhaps to a misguided notion about what the bank would be doing with their hard-earned money.

However, with advances in technology and the tightening of financial regulations it's probably safe to say that this attitude is gradually becoming a thing of the past and most people would acknowledge that, for the most part, banks are safe as houses.

Ease of access has probably had a lot to do with this shifting attitude too. With the global introduction of ATM machines over the past few decades, people can now access their money 24 hours a day and no longer have to queue in their lunch hour or wait over the weekend if they run short of cash.

Moreover, with the advent of the internet era banking has become more transparent than ever. Online banking has revolutionised the way people manage their personal finances and they can now view statements, transfer money and pay bills all from the comfort of their own living room.

Indeed, at a time when the global economy is suffering somewhat of a downturn, many people may feel that the best way to protect themselves is to spread their finances around various different banking institutions, so that they don't lose all their money in the event of one of the banks going bankrupt. But this may not be necessary.

Government-sanctioned bodies such as the Financial Services Authority (FSA) and the Financial Ombudsman Service (FOS) exist to ensure fair and even-handed financial services are provided to businesses and the general public, and to regulate bodies who accept monetary deposits. Essentially, this means that all banks have a higher authority to answer to and helps to provide additional protection for savers and investors.

But for those who are still concerned about the short and long term safety of their savings, there is nothing more reassuring than a full and unconditional deposit guarantee which means that, whatever happens, their money is safe. Countless financial institutions now provide a deposit guarantee which means that safe savings are a reality now for most people. And this can only be good news for those worried about how the economic downturn might affect them.

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