Northern Rock Monies – Guarantee is at an end!!

I am aware a number of clients transferred funds to Northern Rock when the UK government bailed it out in 2007.

Since then the Bank has offered a 100% guarantee on monies held in the bank, regardless of the sum involved.

As of 5pm tonight, all clients need to be aware that the safety net reverts to the standard £50,000 in cash, which is the case as with other banks not backed by the Government.

The Financial Services Compensation Scheme currently protects funds of up to £50,000 on deposit where the Bank or Building Society goes bust.

The previous Government had effectively promised to protect all UK savings regardless of whether it had financially backed the bank or not, so in theory we were all safe as long as the UK government didn’t go bust!

If you have in excess of £50,000 on deposit you are well advised to spread the money around. Feel free to give us a call to get advice on suitable Banks and their accounts.