Whats N/Rock playing at

Just_landed

Originally Posted by opinions4u
The fact that the government backs Northern Rock, offering an effective 100% guarantee against a £35k protection elsewhere, distorts the savings account market and makes NR a popular choice when it may not have been otherwise.

This in itself could destabilise other banks.

The powers that be should look at this.
I think you will find the gov will only guarantee up to £35000 for new customers who were not with NR before it was Nationalized, but if you were a customer before hand then you are covered.

Stavros_3

Just_landed wrote: »

The powers that be should look at this.
I think you will find the gov will only guarantee up to £35000 for new customers who were not with NR before it was Nationalized, but if you were a customer before hand then you are covered.

Hopefully your inacurate posting will not cause another run on the Northern Rock and be headline news because its wrong, see below (The bit in red is a clue)

The guarantee arrangements protect all savers, regardless of the amount deposited and apply to all existing accounts, all re-opened accounts and all new accounts.
They also cover all new deposits, all further interest payments and movement of funds between accounts and all term deposits, including Fixed Rate Bonds, for the duration of their term.
The guarantee arrangements will remain in place during the period of temporary public ownership and, as previously confirmed by the Government, such arrangements would not be withdrawn without at least three months notice in any event.

BACKFRMTHEEDGE

opinions4u wrote: »

The fact that the government backs Northern Rock, offering an effective 100% guarantee against a £35k protection elsewhere, distorts the savings account market and makes NR a popular choice when it may not have been otherwise.

This in itself could destabilise other banks.

The powers that be should look at this.

The banks have created this instability, I think anything that suggests depositers are somehow to blame is ridiculous.:rolleyes:

bristolleedsfan

BACKFRMTHEEDGE wrote: »

The banks have created this instability, I think anything that suggests depositers are somehow to blame is ridiculous.:rolleyes:

The reason why its been said that the NR situation is "destabilising" for other Banks is two fold.

1. NR having an unfair advantage in the savings market at a time when all savings institutions need funds.

2. NR all but pulling out of the morgage market thus pushing more new borrowers and some existing borrowers to other morgage providers at a time when lending funds are scarce/expensive to aquire,

fatpig_2

Stavros wrote: »

Hopefully your inacurate posting will not cause another run on the Northern Rock and be headline news because its wrong, see below (The bit in red is a clue)

The guarantee arrangements protect all savers, regardless of the amount deposited and apply to all existing accounts, all re-opened accounts and all new accounts.
They also cover all new deposits, all further interest payments and movement of funds between accounts and all term deposits, including Fixed Rate Bonds, for the duration of their term.
The guarantee arrangements will remain in place during the period of temporary public ownership and, as previously confirmed by the Government, such arrangements would not be withdrawn without at least three months notice in any event.

The guarantee implicitly applies to all UK banks so there's no point in moving your money from B&b to N Rock or any other savings institution. You're just incurring hassle and losing interest.

Stavros_3

fatpig wrote: »

The guarantee implicitly applies to all UK banks so there's no point in moving your money from B&b to N Rock or any other savings institution. You're just incurring hassle and losing interest.

No, I'm sorry but the only 2 banking institutions that gaurantee 100% of all savings over the 35k threshold is the NS&I and the Northern Rock. Bradford and Bingley does not. It does NOT apply to all UK banking institutions. Read the small print my friend

fatpig_2

I said implicit. If you'd listened to the various government utterances you'd know this. And do you honestly think they'd let a UK bank fail? What happened to HBOS last week shows what will happen the next time any UK bank into trouble..

wildone_2

All Irish Banks and Credit Unions are now covered up to 100,000 EURO per account since yesterday.

LongTermLurker

fatpig wrote: »

The guarantee implicitly applies to all UK banks so there's no point in moving your money from B&b to N Rock or any other savings institution. You're just incurring hassle and losing interest.

NS&I - government owned = 100% protection

NR - government protected (for the time being) = 100% guaranteed (this is a special situation)

All other UK banks who are registered with the FSCS = 100% of the first £35000

All remaining European banks, operating in the UK under the Passport Scheme = FSCS protection for the amount greater than what the bank's own country's scheme will cover, and less than or equal to £35000

As Stavros says, not all UK banks are the same.

Just_landed

I went looking for the info I read on a website this afternoon but could not find it ref post 12 so while I was on NRs site I found info ref you are covered, a BIG SORRY is in order.