'I'm putting my money under the mattress'

Northern Rock's embattled chief executive today attempted to steady the nerves of its 1.4 million savers, saying it was "business as usual".

Adam Applegarth posted a message on the bank's website saying: "Your money is safe and if you want some, or all of it back, then you are perfectly entitled to it."

But panicked savers began queuing before dawn today. Speaking on BBC Radio 4's Today, Mr Applegarth said it would be "business as usual". He added that the internet service would be "10 times better" than on Friday, when it crashed under the weight of users.

Lines formed outside many of the bank's 76 branches from 4am. Doors opened an hour early at 8am and will stay open until 6pm.

By 7.30am the queue at the Kingston-upon-Thames branch was already round the block. One woman said: "I don't trust any more banks. I'm going to put [my money] under the mattress when I get it."

When asked by Sky News if she thought she was overreacting, she replied: "Too bad. It's my money."

About £2 billion of deposits - some eight per cent of the total - had been withdrawn by last night. That was expected to rise today as postal account applications arrived and online savers accessed their accounts.