northern rock savings

lolly5648

bristolleedsfan wrote: »

hope all can see that the Government is in control of events at Northern Rock and it the Government would not allow a situation to occur where NR went into administration with savers deposits locked into NR.

It has been scaremongering :eek: which caused NR savers to withdraw deposits in large numbers unneccesarily.

It may well be scaremongering and I am sure the money will be safe but there is no guarantee that you will have instant access to your money if the Government has to intervene. There could be a few weeks where you couldn't get access to your money and this could be a problem if it is your only savings account and you have an emergency.

bristolleedsfan

lolly5648 wrote: »

It may well be scaremongering and I am sure the money will be safe but there is no guarantee that you will have instant access to your money if the Government has to intervene. There could be a few weeks where you couldn't get access to your money and this could be a problem if it is your only savings account and you have an emergency.

the site prefers links to be posted to save on site space, its a pity some people choose to post back without reading the links within the post they are posting back on and quoting. :rolleyes:

the people widly speculating on what might or might not happen with NR and savers deposits probably dont have savings in NR anyway and they arent quoting any facts, government has already pledged to give savers THREE months notice should it decide to end its savers guarantee.

here u go link again with text within web link.


http://www.moneymarketing.co.uk/cgi-bin/item.cgi?id=155233

Treasury draws up emergency plan for Northern Rock

Tanya Powley - 04-Dec-2007
The Treasury and the Bank of England are believed to be drawing up contingency plans to pay Northern Rock's depositors their money if the lender has to be put into administration.

The Financial Times says that the plan would see the BoE buy Northern Rock's deposits and swiftly pay the balances back to customers.
The paper says that if Northern Rock's shareholders or bidders make demands on taxpayers' money that the authorities regard as unreasonable, preparations are being finalised to withdraw the government's financing of the bank and take control of savers' deposits.
It is believed the Treasury is keen on having a credible backstop in case negotiations over a sale fall through.
This comes after comments made by one of Northern Rock's biggest shareholders RAB Capital - which owns 6.7 per cent of the lender - saying it would oppose the move, stating that Virgin's offer is "cheeky" and "too low".

Paulee

Thanks to everyone who has posted relevant information on this tread, it has been very helpful. There is also another thread, started today, "Good News - Northern Rock" that is also very useful. Now that NR has given one of the best rates + a 0.5% bonus to its Silver Saver account I am very happy to increase my investment with them to £35k.

lolly5648

Bristolleedsfan: I did read the link and did not think it was relevant to my post. I was commenting on your post.

I do have money with Silver Savings and have had bonds with Northern Rock for about 20 years. I think my money is safe but I do think that if the Government has to get involved or if NT is sold there might well be a delay in getting instant access whilst the admin is sorted out or through people panicking.

bristolleedsfan

lolly5648 wrote: »

Bristolleedsfan: I did read the link and did not think it was relevant to my post. I was commenting on your post.

I do have money with Silver Savings and have had bonds with Northern Rock for about 20 years. I think my money is safe but I do think that if the Government has to get involved or if NT is sold there might well be a delay in getting instant access whilst the admin is sorted out or through people panicking.

u say "if the Government has to get involved"

some posters dont appear to be aware that the Government IS not only involved it the government is controlling events.

The reason why NR/Government/Treasury rushed to make virgin a preferred bidder was for two reasons.

1. virgin had told the government longer the uncertainty with NR the worse NR situation would become.

2. prior to above announcement their had been mega amounts of savings deposits withdrawn from NR which above announcement stemmed the outflow of deposits. ( bought time for NR and the government)

NR inducement to existing savers as mentioned in seperate post is designed to both stem flow of deposits out and to regain deposits, by end of march ( possibly sooner) NR future will be clearer.

it would be the government who would decide on administration option ( if that was to become an option) the government has already pledged 3 months notice to depositors before its depositors guarantee was terminated.

in addition as detailed in earlier post, government is making advanced plans for depositers to be repaid its deposits "speedily" in the event that administration option is taken.

if someone is still concerned about not being to access their savings in the future with all those pledges then perhaps they should withdraw their deposits and redeposit elsewhere.