Almost half of all Britons fear that their money is not safe in the bank.

An exclusive survey for The Times has revealed that 44 per cent of us are less certain about the security of bank deposits, the clearest indication yet of how confidence in Britain's financial institutions has drained away.

The survey, carried out by Populus in the wake of the proposed rescue of HBOS by Lloyds TSB and almost exactly a year after the collapse of Northern Rock, also showed that nearly 50 per cent of those questioned are putting less money into savings accounts and 52 per cent have cut back on investments.

While the cost of living remains most consumers' biggest concern, given spiralling energy costs and soaring food price inflation, the findings will raise fresh concerns about the potential for a run on a bank if the financial turmoil of the past few weeks continues.

David Lourie, an analyst at the Good Business consultancy, said: “Consumers are starting to make noises about having less confidence in the financial system, in the financial services sector, and they are not necessarily happy with their money being in a bank.

“If only a small proportion of the 44 per cent who say they are worried act on their fears, it could have pretty big consequences and compound some of the things we have seeing at the moment.”

Andy Hornby, chief executive of HBOS, disclosed in an e-mail to the bank's 70,000 staff on Monday that part of the reason he accepted a £12.2 billion takeover from Lloyds TSB was because the plunge in his company's share price had triggered concerns among customers.

The Financial Services Authority said that it believed that the deal would enhance financial stability and the British Bankers' Association reiterated yesterday that there was no need for consumers to panic because the UK's banks were more than adequately funded.

However, the Populus survey, which covers both “Concerned Consumers” and the general public, indicates that the credit crunch has led to dramatic changes in the way that consumers are spending, saving and borrowing.

Nearly two thirds of respondents are cutting back on what they consider to be luxury foods - a finding that confirms that consumers are “trading down” to discount surpermarket chains at the expense of Waitrose and Marks & Spencer.

More than half, 53 per cent, are spending less money on overseas holidays, while 49 per cent have cut back on new electrical appliances, such as washing machines or fridge freezers.

Meanwhile, staying in is the new going out. Almost half of those surveyed are staying at home more in an attempt to save money, a finding confirmed by the sharp sales growth reported by companies such as Domino's Pizza, Majestic Wine and Game, the electronic games retailer.

Helen Dickinson, head of retail at KPMG, the accountants, said: “If you look at the economic backdrop, people's spending capacity and do the maths, you see people have got less disposable income, so something has got to give.

“The leisure sector and the holiday sector are being hit pretty significantly already and, from a core retail point of view, we are seeing a slow downturn, which is only going to continue.”

In stark contrast to fears about how the housing market is affecting consumer confidence, the Populus survey indicates that inflation is by far consumers' biggest concern, with 84 per cent of those surveyed worried about energy prices.

While supermarkets insist that food inflation has begun to level off, 82 per cent of the population remain concerned about the rising cost of the weekly supermarket shop.

Nearly half, 47 per cent, are worried that their pay is not rising fast enough to match the sharp increase in the cost of living.

Only 31 per cent are concerned about higher interest rates and even fewer are worried about the prospects for house prices.

Economy first

High energy prices are leading shoppers to consider finding electrical products with lower power consumption.

Nearly 30 per cent of consumers asked this year said that they would like companies such as Panasonic, Sony and Samsung to make their products use as little electricity as possible, against 22 per cent last year

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