OTTERY St Mary Town Council will open a new bank account as a 'diversification of risk' to protect town funds amidst the credit crunch.
OTTERY St Mary Town Council will open a new bank account as a "diversification of risk" to protect town funds amidst the credit crunch.
Councillors agreed to begin taking steps to opening an account with Natwest in a bid to spread a proportion of council funds, which are currently held in a single Barclays account.
Council treasurer Paul Lewis said: "Undoubtedly the government stepping in for the banks has helped a lot. The concern is that position may not continue, we are not out of the woods. I have not been chasing (interest) rates with this money but am more concerned with the underlying security of banks.
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules here