PRESSURE on the Federal Government over its bank deposit guarantee has escalated after three big financial institutions hit with a spate of withdrawals by customers last night froze their accounts.

Tens of thousands of Australians, many of them retirees, are now unable to get immediate access to their capital after AXA Asia Pacific, Perpetual Investment Management and Australian Unity suspended withdrawals from some funds.

Treasurer Wayne Swan leaves his hastily called news conference last night. Credit:Glen McCurtayne

Treasurer Wayne Swan responded last night by advising people adversely affected to go to Centrelink to see if they were eligible for income support.

But the Government did not appear to have an immediate answer to the cascading problem, and Mr Swan's comments were seized on by the Coalition, which accused him of insensitivity and incompetence.