Information about the UK Government savings guarantee
The UK Government completed a review of the guarantee arrangements they put in place in 2007, which covered all savings in Northern Rock. As a result of our good progress and the new bank’s strong capital and funding position, HM Treasury, in consultation with the UK Financial Services Authority (FSA), decided that this guarantee was no longer required.
Variable rate accounts opened before 24 February 2010 retained the UK Government savings guarantee up to 24 May 2010 from which point customers are protected under the UK Financial Services Compensation Scheme and the Irish Deposit Guarantee Scheme, providing total cover of up to €100,000 per customer.
Fixed term accounts opened before 24 February 2010 retain the UK Government savings guarantee for the remaining term of the product.
Northern Rock remains UK Government owned and is regulated by the FSA.
This is a positive step in our return to normal business, and ensures that we compete on the same terms as other banks and building societies. Northern Rock provides a safe home for your savings and we continue to offer a range of attractive accounts.
All savings in fixed term accounts opened before 24 February 2010, such as Fixed Rate Bonds, retain the UK Government savings guarantee for the remaining term of the product.
Fixed term accounts opened after 24 February 2010 are not covered by the UK Government savings guarantee.
The savings guarantee has been removed for all savings in existing variable rate accounts, such as Demand or Notice accounts. Following the removal of the guarantee, Northern Rock savings customers in Ireland are protected under the UK Financial Services Compensation Scheme and the Irish Deposit Guarantee Scheme.
Northern Rock plc remains in UK Government ownership.
The savings guarantee was put in place by the UK Government as a temporary measure during a time of Company and market instability. Since then a great deal of progress has been made and Northern Rock has restructured to create a new, well-capitalised bank which provides customers with a safe home for their savings.
HM Treasury, in consultation with the Financial Services Authority (FSA), reviewed the guarantee and decided that the guarantee was no longer required and it has been, therefore, removed for existing variable rate and all new savings accounts.
Northern Rock savings customers in Ireland are protected under the UK Financial Services Compensation Scheme and the Irish Deposit Guarantee Scheme.
The UK Financial Services Compensation Scheme, referred to as FSCS, provides cover of up to £50,000 (at the prevailing Euro equivalent) per person in each FSA regulated bank or building society. Business account customers may be eligible for payments under the scheme depending on the size of the business.
For further information about the scheme (including the amounts covered and eligibility to claim) please contact our Dublin Administration Office, refer to the FSCS website www.fscs.org.uk, or call the FSCS on +44 (0) 20 7892 7300.
The UK Financial Services Compensation Scheme provides cover of up to £50,000 per person in each regulated bank or building society. The Irish Deposit Guarantee Scheme increases the total level of cover to €100,000 per depositor. Business account customers may be eligible for payments under the scheme depending on the size of the business.
For further details on the Irish Deposit Guarantee Scheme and the level of cover provided, please visit www.itsyourmoney.ie
The UK Financial Services Compensation Scheme and the Irish Deposit Guarantee Scheme provides total protection of up to €100,000 per eligible depositor. For customers with more than one account, this cover is apportioned across their accounts based on the value of savings in each account.
Savings in new accounts are protected under the Financial Services Compensation Scheme and the Irish Deposit Guarantee Scheme, providing total cover per eligible customer of up to €100,000.
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© Northern Rock plc. 2010