TWO million people are now using the internet to buy financial products, despite renewed fears about security.

According to a survey for online insurance supermarket Screentrade, one in seven British adults used the internet to find out information about financial services in the past year.

The research showed the number of people actually buying products or arranging their finances online had grown by 11 per cent in the last six months.

The news comes after Prudential's online bank, Egg, was targeted by fraudsters last month.

The launch of Halifax' phone and internet service Intelligent Finance has also been delayed twice.

Paul Charles, editor in chief of Screentrade, said: "Despite stories about security and internet start-up failures, this research shows the internet has become a compelling alternative to buying on the high street or over the phone.

"More than two million people have woken up to the ease and convenience of comparing the best insurance and finance deals on the internet and then buying online."