Rock’s 100% savings guarantee to end
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The Government’s 100 per cent guarantee on Northern Rock’s savings is expected to end in the coming weeks.
According to reports, the Government is taking another step towards making Northern Rock a viable asset for investors looking to buy the bank.
Northern Rock’s savings have been gold-plated since it was nationalised at the start of 2008. The Building Societies Association has been one of the loudest critics of the guarantees, arguing that they are uncompetitive and have stifled mutuals’ abilities to increase retail deposits.
But reports this morning suggest the guarantee will be lifted by the time Northern Rock publishes its annual report on March 10. Once the formal announcement has been made, Northern Rock depositors will still enjoy three-months of Government guarantees before they are returned to the Financial Services Compensation Scheme, which guarantees of up to £50,000.
Northern Rock currently has £14.9bn of savings held in the newly formed Northern Rock plc, which is likely to be sold this year.
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Readers' comments (1)
Anonymous | 10 Feb 2010 10:34 am
So can I therefore verify that there is no bank that now guarentees 100% of deposits.
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