Should I move my Northern Rock ISA ?

Ian_W

Aegis wrote: »

Isn't it £35k or less now?

Yes, but if you'd checked at 6.08pm you'd have seen I'd changed as soon as I posted it.

ollyk wrote:

I wonder how long it would take to claim this money? My bet is months and months!

As no retail bank covered by the FSCS has ever failed during the lifetime of the scheme - or its predecessor - it's impossible to answer. However the chief exec of the FSCS was asked when NR were under the cosh and to paraphrase he said something like ... we don't know for sure because it's never happened before but we'd hope it would be weeks rather than months for most people.

bristolleedsfan

ollyk wrote: »

I wonder how long it would take to claim this money? My bet is months and months!

uve lost your bet, the government has always said that in the event that it was to withdraw its depositors guarantee, it would give NR ample notice beforehand so NR savers could move their savings out

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.

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

"The Treasury will give three-months notice before withdrawing 100 per cent protection for the Rock’s depositors."

25.11.07 http://www.bbc.co.uk/blogs/thereporters/robertpeston/

cheerfulcat

bristolleedsfan wrote: »

hope all can see that the Government is in control of events at Northern Rock

!

This would be the same government whose total incompetence allowed the situation to arise in the first place?

"The Treasury will give three-months notice before withdrawing 100 per cent protection for the Rock’s depositors."

How is this not a recipe for disaster? What do you suppose would happen the moment it was announced that the protection had been withdrawn?

As it happens, I agree that it was scaremongering - particularly by R Peston of the BBC - which caused the initial panic. But the damage is done now, and I suspect that the slightest uncertainty would see more depositors queuing round the block to get their money out...

EDIT: FWIW I think that ollyk is right - it could take months to claim on the guarantee.

bristolleedsfan

this is link i intended to post in earlier post, ( ultimately if depositors are not convinced by all the pledges given by the government then they have option of moving their funds out of NR)

http://www.moneymarketing.co.uk/cgi-bin/item.cgi?id=155233&d=pnd2&h=pndh2&f=pndf2


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".