Information about the UK Government savings guarantee
The UK Government has now completed a review of the guarantee arrangements they put in place in 2007, which cover all savings in Northern Rock. As a result of our good progress and the new bank’s strong capital and funding position, the UK Government, in consultation with the UK Financial Services Authority (FSA), has decided that this guarantee is no longer required.
- Existing variable rate accounts will retain the UK Government savings guarantee until 24 May 2010 from which point customers will be protected under the UK Financial Services Compensation Scheme and the Irish Deposit Guarantee Scheme, providing total cover of up to €100,000 per customer.
- Existing fixed term accounts will 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.
You may also wish to refer to the UK Government’s statement.
Please find below some Frequently Asked Questions to help answer any queries you may have.
All savings in existing fixed term accounts, such as Fixed Rate Bonds, will retain the UK Government savings guarantee for the remaining term of the product.
All savings in existing variable rate accounts, such as Demand or Notice accounts will retain the savings guarantee until 24 May 2010. Following the removal of the guarantee, Northern Rock savings customers in Ireland will be protected under the UK Financial Services Compensation Scheme and the Irish Deposit Guarantee Scheme.
Northern Rock plc remains in UK Government ownership. The ultimate aim is to return to private ownership and any change in status would be announced at the appropriate time.
The 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.
The UK Government, in consultation with the Financial Services Authority (FSA), has reviewed the guarantee and decided that the guarantee is no longer required and it will, therefore, be removed for existing variable rate and all new savings accounts.
Following the removal of the guarantee, Northern Rock savings customers in Ireland will be 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 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 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. The UK Government savings guarantee is in addition to this cover, with existing fixed term accounts retaining the guarantee for the remaining term of the product and existing variable rate accounts retaining the guarantee until 24 May 2010.
Savings in new accounts will be 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