RAINBOWS Children's Hospice withdrew £600,000 of its funds from Kaupthing Singer and Friedlander two weeks before the Icelandic bank ran into difficulty.

The charity decided to do a risk analysis on all its investments after the issue was raised at the last board meeting.

A spokesman said board members were very "relieved that we made the decision at the time".

He said the bank was chosen because of the high interest rate offered at the time, and it was considered to the a safe investment.