Hard-boiled Egg

bluejake

After the run on Northern Rock internet bank Egg has taken steps to protect itself in a similar crisis. Egg has changed its terms and conditions to allow it to halt online withdrawals in the event of a run on the bank. It can freeze accounts for up to 60 days.

Egg has inserted a clause that allows it to stop customers removing money if it thinks its "financial stability" is threatened. It says: "In order for us to run our business lawfully and with prudent liquidity levels, in exceptional circumstances, we may need to suspend your right to take money out of an account for a period of up to 60 days."

I don’t fancy having my savings frozen for two months so I will be withdrawing everything today and opening an account with less draconian terms ands conditions.

I wonder if I can commandeer their money for two months without penalty if my financial stability is threatened. Bast*rds.

Information came from the Guardian Newspaper by the way.



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YorkshireBoy

bluejake wrote: »

I don’t fancy having my savings frozen for two months so I will be withdrawing everything today and opening an account with less draconian terms ands conditions.

Be careful where you put it, because YBS have had such a clause for sometime now (although they don't specify a duration) - and other providers are bound to follow.

Flynn_2

I think there may be a few. It's understandable they should want to do that which was why banks and building societies used to pay higher rates for 30 or 90 day notice periods. Now notice acounts often pay less than internet accounts. If banks want longer notice it should be upfront and not described as instant access - even if it is a clause they are unlikely to invoke.

Savers should be able to rely on the headline claims and might be something the Advertising Standards Authority would be interested in.

gt94sss2

If you read the Guardian story you will see that Egg actually changed its terms and conditions last year - nothing to do with Northern Rocks recent troubles and following these 'it(the clause) is under review and is now likely to be removed'

Also most online banks currently have similar clauses..

Regards
Sunil

Calchas

bluejake wrote: »

I wonder if I can commandeer their money for two months without penalty if my financial stability is threatened. Bast*rds.

:beer:
Surely an instant access account is exactly that. Any attempt to limit access turns the account into a notice account.

To me this is knee jerk, especially as it seems the government are to put in place proper protection for savers in the near future. It seems Mr Darling prefers a quieter life than the one he has endured recently.

oldfella

this seems a particularly pointless T&C clause ..

imagine the conversation .

me - can I have my money back as there is a run on your bank
Egg - no, I know its an instant account but there is a clause deep in the T&C that says I dont need to give you your money for 60 days
me - OK, thats alright then

I think not !

Mike

greyteam1959

Best place is therefore under your mattress makes it a bit lumpy but at least you can get to it when you want it !!!!!!!!!!!!!!!

Flynn_2

mervyn11 wrote: »

Best place is therefore under your mattress makes it a bit lumpy but at least you can get to it when you want it !!!!!!!!!!!!!!!

Except when you want to buy a new mattress because your house burned down.

Calchas

mervyn11 wrote: »

Best place is therefore under your mattress makes it a bit lumpy but at least you can get to it when you want it !!!!!!!!!!!!!!!

So might the guy with the hoopy jumper :mad:

MABLE

Well done EGG!. Look at the fiasco with NR and savers without thinking were withdrawing their savings even though they were aware some may be penalised by losing 3 months interest on their savings. The Government, Bank of England said they would not lose out. Instead they all behaved like lemons.

oldfella

The Government, Bank of England said they would not lose out. Instead they all behaved like lemons.

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your sequence is wrong - the run stopped when the govt guaranteed the savings