Savers are told their money is safe as Governor Money winds up its business after a "disastrous" fall in savings rates in recent months.

Savings provider Governor Money has stopped accepting new deposits from existing customer and opening new accounts. The provider, which launched in April 2011 and is owned by the Family Investments mutual, gave customers access to a range of fixed-term savings products and cash Isas through one account. However, as the money invested is not held by Governor but by the companies offering these fixed-term savings products, in most cases smaller building societies, customers' deposits are not at risk as a result. Governor Money said the Government's flagship "Funding for Lending" scheme was a key factor behind its demise. This scheme offers banks access to cheap lending, leading to a significant fall in savings rates as banks no longer have to rely on money raised through their ordinary savings accounts to fund mortgage lending. As a result there is now far less competition in the savings market. With a scarcity of decent savings deals Governor was unable to secure exclusive rates, making its proposition unviable.....Read more here: Exclusive: Savings provider shuts up shop