would it be wise to tie up a sum in northern rock for 3 years?

the_root_of_all_evil

would it be wise to tie up a sum in northern rock for 3 years?

if not why?

vbrindle

It depends if you feel you might need that money before the 3 years are up or not.

If you feel you might need the cash then don't tie it up in a 3 year bond.

CLAPTON

presumably its a fixed rate bond... so if you expect interest rates to fall then it may be a good thing but if you expect interest rates to rise then you may regret it.

Marleyandme

I think the OP is asking for our opinion on a 3 year bond with Northern Rock specifically, rather than a 3 year bond in general?

I have considered their 5 year bonds but am unsure what will happen to the money if and when they are taken over.

I understand NR are considered safe as backed by government but do wonder what would happen to the T&C of the bond should NR be taken over. Possibility of losing days of interest etc?

Steve_xx

Marleyandme wrote: »

I think the OP is asking for our opinion on a 3 year bond with Northern Rock specifically, rather than a 3 year bond in general?

I have considered their 5 year bonds but am unsure what will happen to the money if and when they are taken over.

I understand NR are considered safe as backed by government but do wonder what would happen to the T&C of the bond should NR be taken over. Possibility of losing days of interest etc?

Northern Rock depositors currently enjoy protection of 100% of their deposits. The government has said that it will fully protect all deposits held there whilst the financial markets are uncertain. The government has not stated when that guarantee might end, nor has it said how it will signal the end of the 100% protection guarantee.

LardyCake

Marleyandme wrote: »

... do wonder what would happen to the T&C of the bond should NR be taken over. Possibility of losing days of interest etc?

I don't think under current law they could unilaterally change the T&C to your detriment without invalidating the contract. btw IANAL (I am not a lawyer)

the_root_of_all_evil

Marleyandme wrote: »

I think the OP is asking for our opinion on a 3 year bond with Northern Rock specifically, rather than a 3 year bond in general?

I have considered their 5 year bonds but am unsure what will happen to the money if and when they are taken over.

I understand NR are considered safe as backed by government but do wonder what would happen to the T&C of the bond should NR be taken over. Possibility of losing days of interest etc?

that is exactly what im getting at, and no i wont miss the money i just want it to be safe for 3 years maybe even 5.

i am currentley with hbos and was thinking of moving to icelandic, after much deliberation i think im sure that the money needs to stay onshore.

hsbc was my favourite but the rate is poor.

cahoot isnt bad but no monthly option which im looking for.

post office is about to go up the creek with the anglo irish bank.

capital one offer a good rate and monthly income without the need of a bond.

so many to choose from, so ive come full circle to northern rock and im sure they couldnt pass your contract on to the new owners say in 2 years time and suddenly pull out the carpet from under you, but this is the goverment were talking could you honestly say that you could trust them given all the BS that has gone before?

Steve_xx

the_root_of_all_evil wrote: »

that is exactly what im getting at, and no i wont miss the money i just want it to be safe for 3 years maybe even 5.

i am currentley with hbos and was thinking of moving to icelandic, after much deliberation i think im sure that the money needs to stay onshore.

hsbc was my favourite but the rate is poor.

cahoot isnt bad but no monthly option which im looking for.

post office is about to go up the creek with the anglo irish bank.

capital one offer a good rate and monthly income without the need of a bond.

so many to choose from, so ive come full circle to northern rock and im sure they couldnt pass your contract on to the new owners say in 2 years time and suddenly pull out the carpet from under you, but this is the goverment were talking could you honestly say that you could trust them given all the BS that has gone before?

You mentioned "on shore" and implied that Icelandic wasn't on shore. For the purposes of safety, Kaupthing can be regarded as on shore for deposits upto £35k are protected under the FSCS.

the_root_of_all_evil

sorry not offshore i meant uk banks only

if a iclandic bank goes bust then you just try and get your doe back, by the time you actually get it youll probably be dead

Steve_xx

the_root_of_all_evil wrote: »

if a iclandic bank goes bust then you just try and get your doe back, by the time you actually get it youll probably be dead

Not true.....

the_root_of_all_evil

well since no one has experienced it it is impoossible to tell but i dont fancy being a pioneer in this process.