How safe is our money?

It depends what money you are talking about, but in general don't panic. Up to £35,000 held in savings accounts run by banks that operate in the UK is protected by the Financial Services Compensation Scheme. If you have more than this in any one institution it might we worth diversifying. If you do, make sure you aren't switching into another brand owned by the same parent company. Halifax and Bank of Scotland are owned by the same group - HBOS - for example. The £35,000 limit applies to all savings held with one company.

What about other investments?

Investments are covered up to £48,000 - 10 per cent of the first £30,000 and 90 per cent of the next £20,000. Pensions and insurance-based investment schemes such as with-profits funds are also protected to an extent. In the event that an insurer went bust you would get the first £2,000 and then 90 per cent of the remainder of your holding. In general, large UK insurers such as the Prudential and Aviva remain sources of financial strength. They exist largely to weather storms and smooth out returns from the stock market. In other words, they plan for disaster as a matter of course. They are not going bust.

But falling share prices can't be good for my unit trusts or other stock market related funds, can they?

Of course not, but take a long-term view. Stock market historians say that in the end sentiment recovers and shares rebound. They have always been right before.

What if I have money with AIG, which I read is in trouble?

AIG, the troubled US insurer that sponsors Manchester United, mostly sells home and car insurance in the UK. At worst, you'd need to take out a new policy. AIG does have a wealth management arm that targets high net-worth individuals. It is covered by the usual investor protection schemes and is not the part of the insurer that is in trouble. Possibly, it could be sold off to a rival.

Would the Government come to the rescue of a UK institution that was heading for disaster, like it did with Northern Rock?

Not necessarily. But UK banks moved to shore up their finances by raising capital following the Northern Rock debacle. There is no reason to think the big players are in the mire. Smaller ones could be taken over.

I'm still in doubt.

Consult a financial adviser.