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

LardyCake

...and I don't think anyone has any experience on getting their money back when a UK retail bank goes bust either.

the_root_of_all_evil

but its got too be easier than getting it from an abroad bank just considering the correspondence alone.

Steve_xx

the_root_of_all_evil wrote: »

but its got too be easier than getting it from an abroad bank just considering the correspondence alone.

Why has it got to be easier? There is nothing to measure it with in either case. what makes you think you'll have to start writing overeas?

the_root_of_all_evil

ok imo i think it would best be in the uk, im off to hsbc tommorrow who say they can give me a better interest rate than advertised.

Steve_xx

the_root_of_all_evil wrote: »

ok imo i think it would best be in the uk, im off to hsbc tommorrow who say they can give me a better interest rate than advertised.

Go with your opinion if you're happy with doing so.

the_root_of_all_evil

thank you.

baby_boomer

Obviously NR is trying to get its retail deposits in long term fixed rate accounts in order to avoid another run on the bank if and when a buyer can be found to take NR off the taxpayers' lifeline.

The five year bonds are clear market leaders for this reason - even though NR should not be distorting the market in this way given its government backing.

These bonds could prove a little gold mine , especially if recession were to cool interest rates.

Is it risky? Probably not too risky. Another bank won't buy unless it can stand the risk. And if the government can't sell then they will continue to run down the NR mortgage book and staff so that the original funding problem, if not the growing bad debt problem, eventually recedes.

Will any government pull the plug and let savers go to the wall? What would that look like politically for either a Labour or a Tory government in terms of that key electoral quality - "economic competence".

setmefree

the_root_of_all_evil wrote: »

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

You already have it's called tax payers public funds
:rotfl::rotfl::rotfl::rotfl::rotfl:

oldandgrumpy

My view entirely, baby boomer, when I was discussing with my ifa taking £35000 of capital and investing in NR for 5 years. I argued that it was probably safer in the long run to take 7% pa rather than wait for the possibility of the market growing by 35% by 2013.
He put it down a bit as a risk, and made the point that although that the FSA covered any loss, it would take time to screw the money out of them. I am considering deferring my pension for 5 years and replacing the income with NR and other bonds , tax free. But his warnings were pertinent and I will wait and see if the current blip UPWARDS in the funds continues for the next 6 months or so.