Northern Rock Crisis Article Discussion

bigg

MarkyMarkD wrote: »

FSCS protection is limited to £31,700 (£2,000 + 90% x £33,000 = £31,700) on each account.

But given that the government are now guaranteeing 100% of all savings in Northern Rock (and any other insitution hit by the present crisis), the point is somewhat academic.

I have no savings with Northern Rock but the present 'crisis' must be making everybody focus on their savings.

If you invest your money you expect to take a gamble, but the rewards are higher. If you save your money, the interest is lower but you expect it to be rock solid, after all it's your money not theirs.

gt94sss2

MarkyMarkD wrote: »

FSCS protection is limited to £31,700 (£2,000 + 90% x £33,000 = £31,700) on each account.

Its per person/institution not per account..

Regards
Sunil

roddydogs

gt94sss2 wrote: »

Its per person/institution not per account..

Regards
Sunil

How many times is it necessary to repeat this?

Alias_Omega

I think its rather funny that northern rock secured an 'overdraft', incase they could not make ends meet for a short whilst,

but now i think we have made sure that they use this overdraft by the endless amount of people withdrawing the cash from the bank.

Talk about a mass walk out, i think the only customers remaining at the end of the month will be those tied into a mortgage, or those who cant get to the bank to withdraw it.

Hands up who thinks next month a new 'high rate ISA' will be launched to get people to come back to the firm.

I bet the advertisment section is working overtime to get customers back..

Alias_Omega

£3000 to put into an ISA... naa £3000 to put into Northern Rock Shares

barak

Alias_Omega wrote: »

I think its rather funny that northern rock secured an 'overdraft'...

I'm not defending them, but it's not really an overdraft, it's a short-term facility which they normally obtain in the market to fund their mortgages, but at present cannot, so the BoE is offering it to them instead.

Paper_Money

bazz_iiii wrote: »

I too would like some info regards the protection or lack of it for account holders using the NR Guernsey.It is very worring that we may lose all our savings with no recourse to any claw back.

The guarantee does include NR Guernsey. There is a press release on the Guernsey Financial Services Commission website. It writes "..HM Treasury has informed the Commission that the deposit of Northern Rock Guernsey with its UK parent plc is included within the Chancellor's guarantee as an existing wholesale deposit and therefore the assets of Northern Rock Guernsey are covered by the Chancellor's commitment."

mystic_trev

gt94sss2 wrote: »

Its per person/institution not per account..

Regards
Sunil

Actually if you read the 'small print' in some circumstances it's not even that!

If Northern Rock had gone 'to the wall' due to (let's say) Sub- Prime problems and another one or two Institutions did the same due to the same problem,then the Govenment would deem it to be one event and apply the FSCS protection limit as an 'aggregate' amount i.e. max £31,700 total for the two or three Institutions combined :eek:

[Deleted User]

Hi,

this is from Martin's news letter this am,

Northern Rock, now the safest place for its existing savers? Northern Rock savers now have safe savings' holy grail: a Government backed product. Interestingly, the Govt’s promise was to protect ‘existing deposits’, meaning those who shift money out of Northern Rock and now redeposit it, mightn't now be protected. I’m checking this as we speak; updates will be in the Northern Rock crisis article.

any idea yet if new deposits are covered by guarantee?

MSE_Jenny

Hi folks

The Sunday Times is writing an article on Northern Rock. The journalist wants to interview someone who has closed their Northern Rock Isa and not transferred it i.e. lost their ISA tax benefits.

If you'd like to be in the article please email:[EMAIL="clare.francis@sunday-times.co.uk"]clare.francis@sunday-times.co.uk[/EMAIL]

Thanks