Investors are fleeing the stock market. They might be heading for trouble

Worried investors are pulling record amounts out of falling stock markets, only to plough their cash into current accounts that earn zero interest and unwittingly do even further harm to their savings. Even those who seek out the best deals are putting their cash in peril because they may find that suddenly their savings interest is taxable.

About £12 billion more was pulled out of investment funds than was put in between January and June this year, the first time that there was a net withdrawal in this period for ten years. Meanwhile, in July £1.1 billion was put into non-easy-access current accounts that pay no interest, normally operated by the big banks, bringing the amount sitting in them to a record £265.5 billion, up