Your questions answered
BUSINESS AS USUAL
Temporary Public Ownership: What It Means For You
On 22 February 2008, the Government took Northern Rock into temporary public ownership, following the passing of legislation.
- Customers are not affected by this change. Your savings with Northern Rock continue to be safe and secure, protected by the Government guarantee arrangements.
- The terms and conditions of your mortgage, savings and other products remain unchanged.
- All Northern Rock branches, call centres and other operations remain open for business as usual.
Questions and Answers
What are the guarantee arrangements and how long will they stay in place?
On Tuesday 9 October 2007, Northern Rock agreed guarantee arrangements with the Bank of England and HM Treasury. These arrangements remain in place at the current time.
- The guarantee arrangements protect all savers, regardless of the amount deposited and apply to all existing accounts, all re-opened accounts and all new accounts.
- They also cover all new deposits, all further interest payments and movement of funds between accounts and all term deposits, including Fixed Rate Bonds, for the duration of their term.
- The guarantee arrangements will remain in place during the period of temporary public ownership and, as previously confirmed by the Government, such arrangements would not be withdrawn without at least three months notice in any event.
Is my money safe?
Yes. The government has put guarantee arrangements in place for all Northern Rock savers. These protect all savers in all accounts, regardless of the amount deposited and apply to all existing and new accounts. The guarantee arrangements will remain in place during the current instability in the financial markets and HM Treasury will give reasonable notice (no less than three months) of any termination of these arrangements.
I'm a new customer. Are my deposits covered by the guarantee?
Yes. The Bank of England and HM Treasury guarantee arrangements cover all deposits, regardless of the amount deposited, and apply to all existing and new accounts, as well as to further interest payments. The guarantee arrangements will remain in place during the period of temporary public ownership and, as previously confirmed by the Government, such arrangements would not be withdrawn without at least three months notice in any event.
Can I still withdraw money from my account?
The Bank of England and HM Treasury have made it clear that all existing and new deposits in Northern Rock are covered by these guarantee arrangements and are safe and secure. Northern Rock continues business as usual and savings can be withdrawn in the usual way. Any saver who wishes to make a withdrawal may do so in accordance with the Terms & Conditions of their account.