'Northern Rock is NOT a best buy savings account' blog discussion

Former_MSE_Lawrence

This is the discussion to link on the back of Martin's "Northern Rock is NOT a best buy savings account” blog. Please read the blog first, as this discussion follows it.

Read Martin's 'Northern Rock is NOT a best buy savings account' Blog.

Click reply to discuss below.

Beate

Well I put quite a chunk in the 6.9% bond when it was still open so for me that was definitely best buy! I have the rest of my money with other banks though, and I can see where Martin is coming from.

CashIn_2

Many savers have joint accounts, for example so that if one dies the other automatically inherits or if one is incapacitated then the other can operate the account. Kaupthing does not accept joint accounts - why do none of the pundits highlight this negative feature?

Northern Rock'sSilver Saver over 50's account pays 6.49%, with instant access and no strings. This option is also rarely mentioned.

charlieboycat

The difference in rate between NR and Kaupthing is a mere 0.01% (and I'm sure I recollect Martin deriding such differences). So put £35,000 into Kaupthing and over 12 months you get an extra £3.50 (before tax). Agreed that after tax its the price of a pint and I'd never normally turn down a free pint - but it's no big deal. Certainly not worth moving money (and losing two days interest) if you're already with NR. For the time being I'm sticking with my NR 6.9% fixed rate access bond plus NR Silver Saver as its access vehicle.

oily_boots

Tried to open a Kaupthing Edge savings account - but Halifax didn't recognise their sort code. Went home and phoned Kaupthing Edge to be told "It is because we are new to UK and some British Banks haven't put our sort code on their system yet!!"

Phoned Halifax branch back and they said "Oh well you will have to talk to International Section"..please, why do I have to sort this out?

Now have to go back to Halifax branch in person and try and persuade cashier that they do exist and it is their job to ensure customers are not disadvantaged.

Surely this is a breach of some FSA Code and probably uncompetitive and hence breach of OFT rules?

Ideas anyone?

EalingSaver

charlieboycat wrote: »

...and over 12 months you get an extra £3.50 (before tax). Agreed that after tax its the price of a pint...

Umm, obviously you don't live in London then....:beer:

MSE_Martin

Hi folks

The point isn't "leave NR and put it in Kaupthing" but "if you're moving money why go to NI". Remember Kaupthing has the rate guarantee.

As for Northern Rock's over 50 account - its still only 6.49% - i'm afraid I didnt quite get the point?

harryhound

oily_boots wrote: »

Tried to open a Kaupthing Edge savings account - but Halifax didn't recognise their sort code. Went home and phoned Kaupthing Edge to be told "It is because we are new to UK and some British Banks haven't put our sort code on their system yet!!"

Phoned Halifax branch back and they said "Oh well you will have to talk to International Section"..please, why do I have to sort this out?

Now have to go back to Halifax branch in person and try and persuade cashier that they do exist and it is their job to ensure customers are not disadvantaged.

Surely this is a breach of some FSA Code and probably uncompetitive and hence breach of OFT rules?

Ideas anyone?

You really ought to post this on a "why is HBOS incompetent" thread.

For what it is worth I had the same problem TWICE with a new employer's payroll: I got the job and thought I would be efficient, so I opened an account at Barclays, the other side of a large roundabout outside my new employer. Somehow they managed to pay my first month's salary to a similar named branch about a mile and a half away. A few years later Barclays decided to close my branch, so I decided to move to TSB, mainly because I could pay cash into a London city centre branch and five minutes later my wife could draw it out 35 miles away. That branch was "new" in that it had only been open for 6 months. (With the benefit of hindsight the government was dressing up "the tinpot bank" for privatisation.) Same problem, big fuss about the branch of my bank not existing.

So your experience is not unusual, I expect the computer department at HBOS is too busy to bother with more than a monthly update of new codes or perhaps it costs them money?

Personally, as a silver surfer, I will be going for the 6.49 offer and then watching it like a hawk.
All this guarantee business is very well BUT as far as I know, it has never been tested in real life.
If there is an element of difficulty getting money into this volcanic island, where you check the first name in the 'Phone book; I would anticipate extended delays getting it out again, if there was an earthquake physically or financially. Must be worth 0.5% on interest rates.

Harry

PS What is wrong with the beer in Witherspoons? Perhaps the Ealing branch (?) is full of foreigners who "know the price of everything but ......"
Ah I know it is a posting from a higher rate tax payer!

sionedhaf_2

although Martin says that Northern Rock savings are garanteed at 100%, the terms and conditions given by NR quote the £35000 limit.Who is right?

MSE_Martin

sionedhaf wrote: »

although Martin says that Northern Rock savings are garanteed at 100%, the terms and conditions given by NR quote the £35000 limit.Who is right?

Both

Northern Rock is a bank like any other and thus technically covered by the Financial Services Compensation Scheme (ie £35,000). Yet it is a government owned bank so the concept of it going bust is sort of devoid as the Government would have to let that happen which its pledged not to - and the Govt has a lot more money than the FCSC!

Martin

tracker528

Can someone please tell me if the Government 100% savings guarentee applies to NEW savers after Oct 2007?
I was told over the phone by Northern Rock that anything I deposit would be guaranteed. Now I see in some websites that this only applies to accounts that existed before all the trouble started.