Northern Rock Crisis Article Discussion

pounds_2

Thanks for the advice Martin.

What is the position for compensation if one has have multiple accounts with a building society i.e Savings account, Isa ,savings bonds.
Is each of them protected to £35,000.

Thanks

ffacoffipawb

MSE_Martin wrote: »

This is to discuss the

Northern Rock Crisis What you should do now article

To join the discussion click reply

Martin, there's an error in the article when it says it is impossible to have more than £35,000 in a cash ISA.

I have £44,000 in mine, with YBS, including £9,000 from a matured TESSA so it is possible!

mean_momma

Scotland_the_Brave wrote: »

- Cavalier Press -Once again the media is doing its best to detroy a good solid institution in it's pursuit of it's own profit. It cannot wait to destroy the "succuessful" in this country.

Oh dear, it is the Northern Rock who were cavalier, gambling on the mortgage market without questioning the integrity of the institutions that it itself was dealing with.

The current scenario reminds me of the 1987 stock market crash when a schoolboy was outed for dealing. Even he had been making a fortune during the boom, but then the bubble burst. Banks ought to know better and exercise some caution.

PHOEBE_2

i have done exatly what martin adviced not to do ever ever ever and withdrawn from my isa at northern rock and have a cheque and lost my no tax status. my question do i put it all £18,000 in a tracker account in one of the high street banks or building societies
or do i split it into separate £ 2000 chunks for safety?
is there one better way than another to salvage some of the errorr i have made by closing the isa and at least making it work for me and still be relatively safe. i am now paicking because of the stock market and trying to make sensible decisions.

gozomark

Hi All

whats the situation with accounts held offshore in Guernsey with NR - I understand there is no deposit protection in Guernsey, but other than that are depositors in the same position as depositors in the UK part of NR ?

I understand NR Guernsey lends its deposits to the parent company - if true, are there assets set aside by the parent company against these ?

roddydogs

Im amused at Martins assertion that if you have £35000 theirs nothing to worry about-you will ONLY lose £3.300!! to most people that is a huge amount!

CasperBloomberg

I'm still trying to find out if Northern Roack offset mortgages are still a good idea after this and the article from Martin didn't mention them at all.
Offsets mean putting all eggs in one basket to make them most effective, but then could mean a big loss under the compensation rules if you've covered your mortgage this way.
Or does it? Would the account have the mortgage cleared, before the assetts are lost?

MSE_Martin

With regards to the

Im amused at Martins assertion that if you have £35000 theirs nothing to worry about-you will ONLY lose £3.300!! to most people that is a huge amount!

That wasn't my point. The logic behind this is that unless you start sharing out £2,000 per banking institution - when if you have £35,000 plus you'll soon run out. Then you're not actually improving the safety of your cash by very much - as there's no extra protection at any other bank.

There's also a responsiblity issue here. If I start saying "shift all money" from Northern Rock - it adds to the irresponsible panic much of the media have already pushed. I won't do that. It's not an appropriate response. There was no real problem with Northern Rock; and right now any risk to the bank is still a tiny tiny fraction.

We are all better off with Northern Rock solvent and in all likelyhood sold. By orchastrating panic - we increase the risk of a run not just on Northern Rock but on all banks - if that happened the FCSC wouldn't protect anyone.
The main message for everyone is don't panic - don't move anything under £35,000 for security reasons. To read into that "losing £3,300 isn't a big deal" is a misread.

Martin

roddydogs

Why is Martin not posting callistos link that gets you into the NR website?
is it illeagal? its in the "Savings" articles, and it works, unlike the normal NR website.

Cozworth806

Reading the financial press at the weekend I am amazed that ML has not highlighted the most important part of NR's problems for savers, that they pay consistently poor saving rates. The ISA was quoted at something like 5% where is it is easily possible to get 6% elsewhere.

The reason to get your money out is not because it is unsafe but to obtain better rates, and that should always be done. People move mortgages to save money but don't seem to apply the same logic to reviewing and moving savings on a regular basis.