Following the bailout of both HBOS and Royal Bank of Scotland and stock market volatility, research from Fairinvestment.co.uk* has found that 57 per cent of Brits with savings have split them into more than one investment, minimising risk.

In fact, the survey found that 25 per cent of savers have split their deposits in two, 13 per cent have split them three ways and eight per cent have divided them between four separate products.

The research also found that savers have investments in a number of products, including cash ISAs, stocks and shares ISAs, current accounts, savings accounts, unit trusts and property.

Commenting, chartered financial planner at Fairinvestment.co.uk, Sharon Bratley said: “Investing in different types of assets, for example, equities, corporate bonds or gilts, property and cash can diversify investments and reduce the level of risk overall. And as the average savings rate falls to near zero, this could prove a sensible option for many.”

Examples of investment that can help diversify a portfolio include, unit trusts – investing in a unit trust means investing in the shares of around a hundred or so different companies rather than investing in the shares of one company, which can ensure that capital is not exposed to the risk of a single company failing.

Other funds include capital protected products, which give an investor exposure to the stock market, with the protection that the initial investment will be returned at the end of the term.

Structured investment products also have a place in today’s market taking into account investors’ needs which can’t be met elsewhere, for example, a high level of income, something that is difficult to find at the moment with interest rates at historically low levels.

And, to kill two birds with one stone, many of these investment plans come with an ISA option that will allow an investor to make the most of the approaching ISA deadline on April 5.

Mrs Bratley added: “With interest rates as low as they are, investors are having to look at other options in order to meet their objectives.

“Previously, investors might have had all their savings with their bank or building society but now need to consider other types of investment that previously they wouldn’t have.

“Investing in a broad range of assets has a number of benefits – it potentially lowers the overall level of investment risk undertaken and could also increase the potential investment returns. Just as importantly, investing in a broad range of investments in a volatile market can minimise losses.”

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*Research conducted by OnePoll for Fairinvestment.co.uk with 2,000 respondents