Should I close my Northern Rock Account?

mrp45

hello, i've found this thread. I was having similar concerns about my savings. From what I gather if you don't have too much in your account there's not too much to worry about as there is a certain amount of money put to one side,. But if you have quite a lot, I think it's wise to move it.

Everyone is saying not to worry because someone will buy them if things get bad, but that seems a bit weird. Who's going to buy something that is totally tanking and whose assets are all loans that may not get paid back because of lax lending criteria? And if everyone can alway relax knowing that the next bigger fish will bail them out, then why should anyone lend responsibly?

I think it's all very dodgy at the moment, so I'm gettting my money well clear!

gt94sss2

webdeepak wrote: »

And for moneysavers, there is nothing wrong in keeping shut when you know nothing about the subject. You are merely misguiding other people. Because when you open your mouth and speak about the subject you know nothing about. You tell me what comes out of ones' mouth...?

I'm afraid that if there is someone who doesn't know what they are talking about its you.. - the only thing you may succeed in doing is making some people worry unnecessarily.

Even the BBC article you linked to says things like:

However this does not mean that the bank is in danger of going bust, Business Editor Robert Peston says.

There was no reason for people with Northern Rock savings accounts to panic, he added.

Treasury Select Committee chairman John McFall urged Northern Rock customers not to panic.

"I don't think they should be worried about their current accounts or mortgages," he said.

Oh - and financial journalists have been writing about Northern Rock for months.. - long before this thread started


Regards
Sunil

amz84uk

Northen Rock (like most banks and Financial Institutions) is regulated by the FSA, which protects customers upto £33k (i think). So it's recommended to have savings up to £33k-ish in any ONE bank. If you have more, recommend to switch it.

Accountants or Financial Advisors here will be able to shed more light on this, so apologies if I'm wrong with the figures.

Labman_2

webdeepak wrote: »

But I will say again if it hasn't happened before does not mean it can't happen again....

Yes, that makes a lot of sense!

MattyNeth

"However this does not mean that the bank is in danger of going bust, Business Editor Robert Peston says.

There was no reason for people with Northern Rock savings accounts to panic, he added. "

I'd say the bank is in imminent danger of going bust. They must be trading pretty much insolvent. With banks failing to lend to them overnight, the B of E have been forced to lend them "unlimited" cash with a substantial penalty. Today they'll be a run on the bank as savers move out - that will happen. I think the Rock are finished

maria74

When I saw the news on TV last night I got quite worried as I have a mortgage with NR - hence looking for advice this morning.

On my 'search' I did find this webpage that seems to sum things up quite simply (first link on this site so hope it works)

http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2007/09/14/cnrock514.xml

(it doesn't look as if it has worked like the proper links so you might just have to copy and paste - sorry!)

Personally I think its a case of if you are worried get proper finacial advice and at the very least keep your eyes and ears open. I think I will try and get some mortgage advice myself.

roddydogs

ManAtHome wrote: »

5 years ago it was around 600 (from the graph) - went up fairly recently as a lot did probably due to all the buyout money sloshing around. They originally floated at 350, so still in front.

Anyway, your money has some protection - if they go bust and nobody wants to buy them (unlikely), you get 100% of the first £2k and 90% of the next £33k (backed by government/BoE).

Ive got more than £35k-i want all of it not just 90%!!!:mad:

roddydogs

Ive just tried to take money out of NR suprise, surprise, the Website is not working-Just coincidece im sure. Coul other members please try!:mad:

jerryl_2

webdeepak wrote: »

Andy Gray, thanks for your response.
But I will say again if it hasn't happened before does not mean it can't happen again.

I must say that I started this forum after a month of contemplating and see Northern rock's share prices which was a week ago, before any smart boy 'financial journallist' even had a hint of this. Tomorrow you will see all these so called intelligencia say it all.

And in today's market I can tell you. No one will buy Northern Rock. They will let it go bust and buy it from the administrators. Hence bigger - better bargain. No debtors only creditors.

And for moneysavers, there is nothing wrong in keeping shut when you know nothing about the subject. You are merely misguiding other people. Because when you open your mouth and speak about the subject you know nothing about. You tell me what comes out of ones' mouth...?

Northern rock are in a decent position,assets in relation to debts is very positive.
They are the 4 th bank,building society to borrow money this year.
As for thinking something is wrong because they increase their savings rate,what a load of rubbish.
I have been advised to try and buy shares in them by an fa last night,i think a good time to make some money in the the next few months,its a shame i dont have any to invest.
Anyone trying to move money is mad,great rate of interest in the current situation.I do not mean to be rude but i would rather listen to lots of experts views rather than yours who like myself is a simple punter.
I do not think its up to you to tell people what and when to speak.Shares go up,shares go down.(that is what they do.)

Fedz

roddydogs wrote: »

Ive just tried to take money out of NR suprise, surprise, the Website is not working-Just coincidece im sure. Coul other members please try!:mad:

According to Declan Curry (BBC Business) this is due to the high volume of (needlessly panicking) customers logging in to internet banking.