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NR Silver Saver Closed to New Customers

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1echidna
1echidna Posts: 23,086 Forumite
in Savings & investments
I see from the Northern Rock website that their Silver Saver is being closed with effect 31/03/08 to new customers. Existing customers will still be able to withdraw and deposit funds. Too much competitive advantage over other banks apparently who must have been crying foul. Just what rates can NR set and how much inflow of money can it achieve to meet its business plan without other banks objecting?
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Comments

  • roddydogs
    roddydogs Posts: 7,479 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Cmpetitive? its going down to 6%, hardly competitive!, Cov BS is 6.4%, Kapthingey 6.5%
  • 1echidna
    1echidna Posts: 23,086 Forumite
    Silver saver still 6.25%AER, and considering backed by BoE very competitive place for a large amount of money.
  • rebeccaj
    rebeccaj Posts: 1,390 Forumite
    Part of the Furniture Combo Breaker I've been Money Tipped!
    1echidna wrote: »
    Silver saver still 6.25%AER

    only until 4th April though.
  • oldfella
    oldfella Posts: 1,534 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    outlook for savers at NR not good I reckon

    from their Competitive Framework on their website

    We will not allow our share of retail deposit balances to exceed 1.5% in the UK and 0.8% in Ireland (well below our historic levels of 1.9% in the UK and 1.3% in Ireland)
    We will not rank within the top 3 in any one of the defined 15 Moneyfacts retail deposit categories for the remainder of 2008.
  • nilrem_2
    nilrem_2 Posts: 2,188 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    Call me Mr Thickie but if NR are not going to offer decent rates and attract savers cash how are they going to pay back the £28bn (approx) to the taxpayer?:confused:
  • bristolleedsfan
    bristolleedsfan Posts: 12,644 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    nilrem wrote: »
    Call me Mr Thickie but if NR are not going to offer decent rates and attract savers cash how are they going to pay back the £28bn (approx) to the taxpayer?:confused:

    By morgage redemption, those who are coming to the end of fixed rate deals are being encouraged to go elsewhere. ;)

    http://www.ft.com/cms/s/0/5bc6b876-ff85-11dc-b556-000077b07658.html?nclick_check=1

    Trouble is the high risk/LTV Borrowers will have nowhere to go.
  • nicko33
    nicko33 Posts: 1,125 Forumite
    bristolleedsfan wrote: »
    Trouble is the high risk/LTV Borrowers will have nowhere to go.
    yet another Stealth Tax then ;)
  • Meltdown_2
    Meltdown_2 Posts: 471 Forumite
    100 Posts
    nilrem wrote: »
    Call me Mr Thickie but if NR are not going to offer decent rates and attract savers cash how are they going to pay back the £28bn (approx) to the taxpayer?:confused:

    Mr nilrem ;),
    the first hurdle that NR has to get over is to stop our Lords & Masters (the EU Commission) from ruling the government support for NR as "anti-competitive".
    That is the game we are playing at the moment. I see that NR has closed its Danish subsidiary - thereby silencing(?) the outcries from the Danish Banks. (I must admit to a little surprise that the Irish one is staying.)

    The parts of the "Competitive Framework" about restricting their 'share of retail deposit balances' and not ranking 'within the top 3 in any one of the defined 15 Moneyfacts retail deposit categories for the remainder of 2008' are part of that game, as is something they say about not using the government guarantee as a marketing tool.

    Notice, though, that they could still be 4th on Moneyfacts lists (and why Moneyfacts? answers on a postcard to ...) and in Jan 2009 they could be at No.1 (though I doubt it .. ;)).

    A better time to view NR's future strategy will be AFTER the EU Commissioner has said OK to the NR/HMG proposals.
    Imprudent granting of credit is bound to prove just as ruinous to a bank as to any other merchant.
    (Ludwig von Mises)

  • ianmr65
    ianmr65 Posts: 596 Forumite
    Meltdown wrote: »

    A better time to view NR's future strategy will be AFTER the EU Commissioner has said OK to the NR/HMG proposals.

    Well said and expertly put MD!!

    No doubt the EU will also be pushing Mr Wobbly at No 10 to get it back into private ownership. Which is also, almost certainly Ron Sandler's brief.

    Pay back the taxpayers, fob off the shareholders. Slim it down, get rid of the dodgy debts, and persuade Lloyds or whoever to take it back before the next election.

    So Dodgy Dave can't use is as so much of a hammer during the campaign. My guess would be re-privatised somehere in the middle to end of 2009.
  • bristolleedsfan
    bristolleedsfan Posts: 12,644 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    nicko33 wrote: »
    yet another Stealth Tax then ;)


    Some NR high LTV borrowers have a "100%" or in some cases "125%" (:rotfl: ) repossession guarantee IMO. ;)
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