Daily Banking Industry News
Thursday 04th of March 2010

Banking Sectors:

By company:

By organisation:

New!

Also see:

October 3, 2008

Northern Rock turns savers away

by Gill Montia

Story link: Northern Rock turns savers away

Northern Rock has withdrawn over half its savings products because of high demand for new accounts.

The Government’s delay in increasing the cover provided under the Financial Services Compensation Scheme for savers’ deposits is prompting consumers to seek safe-havens for their money.

The guarantee currently stands at £35,000 and remains under review but savers with nationalised Northern Rock benefit from 100% protection for their funds.

The recent turmoil in the financial sector has seen thousands of savers turn their backs on Bradford & Bingley and Halifax and transfer money to Northern Rock.

However, when the bank was nationalised in February, competition rules restricted its share of the savings market to 1.5% and applications for the following savings accounts are no longer being accepted: on-line E-Saver; Fixed Rate Access Bond; Silver Savings; Silver Savings 30; Business Reserve and Fixed Rate Bonds.

Meanwhile, the decision of the Irish Government to increase its savings guarantee to 100% has met with criticism from the UK financial services sector.

Since the announcement earlier this week, savers have been moving their deposits into the six banks covered by the guarantee and into Post Office accounts, which are backed by the Bank of Ireland.

 

Add to Bookmarks:

ADD TO NETSCAPE     ADD TO DEL.ICIO.US     ADD TO DIGG     ADD TO FURL

ADD TO STUMBLEUPON     ADD TO YAHOO MYWEB     ADD TO GOOGLE     ADD TO SPURL


Related stories to: Northern Rock turns savers away

Danish banks lodge complaint over Northern Rock  ...

End time for Northern Rock’s 100% savers’ guarantee  ...

Northern Rock awaits further withdrawals  ...

Northern Rock executives under fire  ...

Chancellor rescues Northern Rock savers  ...

No Comments »

No comments yet.

Leave a comment


Previous: « Evercore appoints private equity senior MD
Next: BoE warns credit will become tighter »

Visited 1040 times, 2 so far today


Savings & Investment News

Savings & Investment News
Co-operative reports widespread ISA ignorance

Borrowing & Lending News