'I'm going to cash my cheque in and put my savings elsewhere'

The sign in the window of Northern Rock in Golders Green, north London, read: "Come in, let's talk". But yesterday customers wanted to do far more than that; they wanted to empty their savings accounts.

Across the country queues of worried customers formed outside Northern Rock branches in response to news that the bank, the UK's fifth largest mortgage lender, had applied to the Bank of England for emergency support after struggling to borrow money.

In Golders Green queues started forming at 8am yesterday even though the doors had yet to open for another hour. By mid-morning more than 100 customers had arrived. Some simply wanted an explanation and reassurance from the bank's staff but most said they were there to withdraw their money and close their accounts.

Andrew Gill, a retired revenue controller, was one of those in the queue yesterday. The 69-year-old said: "I'm going to cash my money in, get a cheque and put my savings into another bank. Northern Rock has lost its reputation over this. Once you lose your reputation it's hard to get back. If people up and down the country are closing accounts the company might not be in business next week so I think it's wise to get out quickly."

Northern Rock had earlier called for customers to stay calm, assuring them their money was safe and that the difficulties were as a result of temporary market conditions. Outside branches across the country that appeal was, it seems, being ignored, amid reports of customers brandishing slips showing withdrawals of £100,000.

David Shaw, 67, a retired accountant from Hendon, echoed the views of most choosing to close their accounts when he admitted: "I suppose I am being a little bit irrational, but safety comes first. I do believe Northern Rock when they say my money will be safe, but I've got a lot of money in that account and there is no point in taking an unnecessary risk."

Two bank workers appeared every so often to field questions and try to calm concerns. Every now and then customers would leave the shop clutching their cheques after emptying their accounts.

The mass of people waiting patiently on the street drew glances of confusion and questions from passers-by who were unaware of the news surrounding the bank's financial situation.

Furniture store manager Raj Jethwa, 54, has a savings account at Northern Rock. He illustrated the knock-on effect that panic emptying of accounts can have. "I saw the news and I wasn't too worried, but after seeing this I am," he said. "I'm going to go home and get my bank book and join the queue."

The only welcome relief for those in the queue came at noon when a girl from a nearby coffee shop came across the road with a tray of complimentary drinks.

She wasn't the only one attempting to serve the needs of the captive audience. Jay Purewal, a financial advisor at the nearby Alliance & Leicester, spotted an opportunity to seize customers from his bank's rivals. He handed out his business cards offering free financial advice to those who were closing their accounts.