The Financial Regulator has reported a huge surge in contact from members of the public who are confused about the current financial crisis.

The regulator's office has received more than 1,000 phonecalls and 1,500 email queries about the deposit guarantee scheme announced by Finance Minister Brian Lenihan this week.

It says many people mistakenly believe their savings are not protected because the money is not in one of the six banks covered by the guarantee.

However, the regulator is reassuring customers that all savings up to €100,000 are protected in every financial institution operating in Ireland, not just the six Irish-owned banks and building societies.