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Government Help for ex Northern Rock ISA holders
gt94sss2
Posts: 6,238 Forumite
More at http://www.hm-treasury.gov.uk/newsroom_and_speeches/press/2007/press_110_07.cfmThe Economic Secretary, Kitty Ussher, today announced that the Government would allow people who during the recent financial market disruption withdrew cash from Individual Savings Accounts (ISAs) held at Northern Rock – and in the process lost their tax advantages – to re-deposit that money into a cash ISA with Northern Rock or any other provider, restoring their tax advantages.
Kitty Ussher said:
“To ensure that Northern Rock ISA savers are not penalised by the financial instability in the market. I can announce today that in these exceptional circumstances, the Government will allow the people affected to re-invest their money into any cash ISA, including Northern Rock’s, and thereby restore their tax advantages.”
Savers wishing to restore their lost cash ISA tax advantage must by 5 April 2008 either:
a) return their funds to a Northern Rock ISA, or
b) obtain from Northern Rock a certificate for the amount of cash ISA savings withdrawn between 13 and 19 September, and present this to a new cash ISA provider when depositing the money.
This announcement applies to funds withdrawn from Northern Rock ISAs between Thursday 13 September and Wednesday 19 September inclusive.
Regards
Sunil
0
Comments
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Seems not entirely unreasonable.
But the really odd bit is in the 'Notes to Editors'. Where there is a clear indication that there is an existing dispensation. Which allows people who closed ISAs, but had contributed part of their 07-08 £3k allowance whilst with NRK, to have contributed further ...... with another provider .... since mid Sept? Did that creep in whilst my back was turned?If you want to test the depth of the water .........don't use both feet !0 -
This has nothing to do with popularity of course. If the government were serious about that they would make a human sacrifice of Ed Balls.....The Economic Secretary, Kitty Ussher, today announced that the Government would allow people who during the recent financial market disruption withdrew cash from Individual Savings Accounts (ISAs) held at Northern Rock – and in the process lost their tax advantages – to re-deposit that money into a cash ISA with Northern Rock or any other provider, restoring their tax advantages......under construction.... COVID is a [discontinued] scam0 -
....... of Ed Balls.....
Didn't you intend an apostrophe then???;) Or were you intending to sacrifice the whole of him?
http://homepages.paradise.net.nz/mattpowe/cartoons/english_02.htmlIf you want to test the depth of the water .........don't use both feet !0 -
..in an "encouraging runs on banks" kinda way...?
Whoops - the thanks got in the way of the quote:rolleyes:
No ..... in a 'discouraging runs on banks' sort of way. Can you advise (vis a vis Farepak etc) what it will cost the Treasury to allow NR ISA withdrawees to re-instate their money??If you want to test the depth of the water .........don't use both feet !0 -
No ..... in a 'discouraging runs on banks' sort of way. Can you advise (vis a vis Farepak etc) what it will cost the Treasury to allow NR ISA withdrawees to re-instate their money??
absolutely no cost to the treasury to allow NR ISA withdrawees to reinstate their money, the government merely doesnt want the isa holders to lose out due to what were exceptional circumstances outside of their control. ( their being the isa holders)
moral of the farepak story is for people to only save where their savings are protected in the event the savings provider goes bust, heres another example of a provider going bust where savings are protected up to stated limit.
http://www.myfinances.co.uk/News/bank-accounts/banking-practices-and-conduct/rochdale-lender-collapses-$480267.htm0 -
bristolleedsfan wrote: »absolutely no cost to the treasury to allow NR ISA withdrawees to reinstate their money,
Exactly .. my question was rhetorical. There's no alignment whatsoever to Farepak etc.If you want to test the depth of the water .........don't use both feet !0 -
Whatever it costs this time, it sets a precedent so who knows what it might eventually cost (bank shares dropped 20% so I pulled all my cash out etc).
Also they've set an arbitrary time limit creating (yet another) subset of winners and losers. This is on top of suddenly boosting deposit guarantees - why now, why haven't they increased in line with inflation, where were the FSA etc...
Farepak - maybe an interest-free one year loan for half your losses so you could have an xmas, compared with NR "I'm pulling out because I could lose less than 10% of my £30k+".
Perceptions - our "socialist" (lol) govt only looks after the well-off...0 -
(Labour voter alert!)bristolleedsfan wrote: »
In fact individual deposits in a credit union are limited to (the greater of ) £10,000 or 1.5% of of total capital. No one's going to have £35K in a savings coop. But if this had happened just over a month ago there would have been losses for a few customers with over £2000 held, I'm guessing.Rochdale Council is allaying savers' fears as all deposits up to £35,000 are protected by the Financial Services Compensation Scheme
Hmm! http://www.fsa.gov.uk/Pages/Doing/small_firms/unions/faqs/index.shtml#lp
Now look at this leaflet (from the same FSA site): http://www.moneymadeclear.fsa.gov.uk/pdfs/credit_unions.pdfShares 12. What is the maximum shareholding a member can have?
The greater of £10,000 or 1.5% of the total shareholdings in the credit union.
Not impressed..or as Spotiswood say's in 'Team America' "BAD, I.N.T.E.L.L.I.G.E.N.C.E!"What happens if a credit union goes bust?
Answer
If a credit union is unable, or likely to be unable, to repay its depositors, you may be able to get compensation from the FSCS.
The maximum amount is £35,000 for each member. This limit is the same for depositors of banks and building societies......under construction.... COVID is a [discontinued] scam0
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