norwich and peterborough 5% fixed regular saver

alypinkbalddog

Hi

I need some advice please.

I am just about to open a family regular saver at a fixed 5% rate for one year.

Can anyone advise on whether this building society is in trouble and should avioid it like the plague. Heard they made some bad decisions with investling peoples money and they could have large compensation claims???

Am I protected if they go down.

thanks

opinions4u

This link says:

Important Information About Compensation Arrangements

N&P are covered by the Financial Services Compensation Scheme (FSCS). The FSCS can pay compensation to depositors if a building society is unable to meet its financial obligations. Most depositors - including most individuals and small businesses - are covered by the scheme.
In respect of deposits, an eligible depositor is entitled to claim up to £50,000. For joint accounts each account holder is treated as having a claim in respect of their share so, for a joint account held by two eligible depositors, the maximum amount that could be claimed would be £100,000. The £50,000 limit relates to the combined amount in all the eligible depositor's accounts with the building society including their share of any joint account, and not to each separate account.
For further information about the scheme (including the amounts covered and eligibility to claim) please ask at your local branch, refer to the FSCS website www.fscs.org.uk or call 0800 678 1100.

natman

alypinkbalddog wrote: »

Hi

I need some advice please.

I am just about to open a family regular saver at a fixed 5% rate for one year.

Can anyone advise on whether this building society is in trouble and should avioid it like the plague. Heard they made some bad decisions with investling peoples money and they could have large compensation claims???

Am I protected if they go down.

thanks

As highlighted above this N&P are covered by the Financial Services Compensation Scheme.

I have a normal regular saver at 4% and really have liked the way they have been.
The 5% family regular saver requires certain conditions.

I have been happy with N&P, you can view you account online which is also great.
I personally have found nothing worrying whilst saving with them for the last 12 months.

fairtrade

Norwich & Peterborough are well run, and didn't have over-exposure to the recent round of bad mortgages.
Matthew Bullock, Chief Executive, is on record as saying the society has the liquidity to compensate all investors in full if the FSA finds against them. The problem arises with a small number of investors in KeyData Services, which was recommended by the society.

opinions4u

fairtrade wrote: »

Norwich & Peterborough are well run, and didn't have over-exposure to the recent round of bad mortgages.
Matthew Bullock, Chief Executive, is on record as saying the society has the liquidity to compensate all investors in full if the FSA finds against them. The problem arises with a small number of investors in KeyData Services, which was recommended by the society.

Well he's not going to say "we're teetering on the brink".

I think the FSA issued a statement saying HBOS was a strong bank two days before it collapsed.

fairtrade

The difference is that there are only about 250 investors in KeyData and the ombudsman has only found in favour of 1 complaint on the grounds of mis-selling and a refund of £28,000 given. The maximum investment was £100,000 although not all investors took advantage of this.The N&P has assests in the region of £5billion and is in a position to refund all the investors if the FSA rules against the society.