NR offers a 6.35% (gross) fixed income bond. (5.08% after 20% tax).

You can withdraw as much money as you want when you want. The rate is guaranteed until Feb 2009.

As its government backed would you deposit a large sum of money here as opposed to NS&I at 5.25% (gross).

They are going to pull this offer on monday.

Is it safe?

Safe as houses.

i wonder if you had a kid, opened a savings account in his name and reduced the tax bill using your kids tax free rate.

I hope so it is as that is exactly what I did on Monday - took a substantial sum out of another bank and put the whole lot into that bond with NR.......

If you don`t need the money for 12 months, and you need a "safe" investment for upto £15K, NS&I Indexed Linked Certificates pay RPI + 1.35% Tax Fee (5.45%? NET). As long as RPI doesn`t fall too much (unlikely?), it`s a better return.

In January NR had a Fixed Rate Access Bond (Issue 1), paying 6.9% Gross. Same terms as above. It was pulled at the end of the month. Issue 2 was at 6.5% (I think), but only lasted 13 days - 1st -13th February. The Rock is now on Issue 3, effective 14th February onwards, but for how long before it's replaced by Issue 4 at 6.1%? Who knows?

I managed to get some cash into Issue 1, and later tried to get some into Issue 2, but it had closed by the time I sent off the signed form.

For anyone 50 or over they have their silver saver online, currently 6.49%, but the rate is not guaranteed and will probably be reduced soon.

This rate will be pulled early next week. However if they receive deposits in the post from NS & I within 5 days or so after its pulled they will accept the deposits.

Why do NS&I not do BACS or CHAPS - they will only let you close an account, transfer money by post...what a palava.

If you can tie up your money for a year you get an extra 0.10% (6.45% net) - hardly worth it if you have to move quick.

I have also been told that if the 100% govt guarantee is to be stopped the bank will give 3 months notice.

Any more info on this?

http://www.housepricecrash.co.uk/forum/ind...showtopic=66542

Thanks oldie - so here it is - in writing on govt. HMRC treasury website - all your dosh up to an infinite amount is 100% guaranteed by the government.

6.35% Gross - guaranteed for 1 year - access anytime - why would you risk putting your money else where??
Or to phrase it better what is the benefit of putting youyr money in NS&I at way less interest and the same guarantee??

And if they decide to withdraw the guarantee you get 3 months notice.

Is there anything I am missing here?


18 December 2007

Northern Rock plc: Extension of wholesale guarantee arrangements
HM Treasury today confirms that the guarantee arrangements for Northern Rock plc described in HM Treasury's announcements dated 20 and 21 September 2007 and 9 October 2007 are being extended, at the request of Northern Rock plc, to the following unsubordinated wholesale obligations, whether now existing or arising in the future:

all uncollateralised and unsubordinated wholesale deposits and other borrowings which are outside the guarantee arrangements previously announced by HM Treasury;
all payment obligations of Northern Rock plc under any uncollateralised derivative transactions;
in respect of all collateralised derivatives, and all wholesale borrowings which are collateralised (including, without limitation, covered bonds of Northern Rock plc), the payment obligations of Northern Rock plc to the extent that those obligations exceed the available proceeds of the realised collateral for the relevant derivative or borrowing; and
all obligations of Northern Rock plc to make payments on the repurchase of mortgages under the documentation for the "Granite" securitisation programme.
The previous announcements have created guarantee arrangements for all unsecured retail products of Northern Rock plc and many of its wholesale deposits and borrowings. This announcement extends these arrangements to a wider range of wholesale products. The extension is in line with the previously announced objectives of the Tripartite Authorities of financial stability and the protection of the taxpayer and consumer and for the purposes of Northern Rock plc's credit ratings in respect of the wholesale obligations described above.

No change is being made to the guarantee arrangements in respect of retail deposits of Northern Rock plc, which remain fully protected under the announcements previously made by HM Treasury. Northern Rock plc will pay an appropriate fee for the extension of the guarantee arrangements. As previously announced, the arrangements to protect retail and wholesale depositors of Northern Rock plc will remain in place during the current instability in the financial markets. Reasonable notice, which will not be less than 3 months, will be given by HM Treasury of any termination of these arrangements.

I put 30K into NR about a month ago from my STR fund. It is probably the safest bank out there at the moment followed by Nationwide and Lloyds. Not sure about everyone else.

Where is it written that it will be pulled next week ?

We have application and deposit ready to go - but are awaiting outcome of Nationalisation debates through parliament before submitting.

It is not written anywhere. I want into NR on wednesday to open up the fixed rate 6.35% easy access bond with £5 - so I had account details to organise transfer from NS&I of STR fund.
I got a call the next day thursday morning from branch manager telling me they just got notification it was on 'watch' and would be discontinued early next week. (off the record - as it is too anti-competitve).

Anyway I explained it would take 5 days or so for transfer - as NS&I do not do Chaps/BACS but only do Post.
She phoned head office and got back to me saying even if they discontinue it next week they will still accept my transfer as long as it arrives by end of week.

Hope this helps

Anyone who deposits money in the Communist Bank known as Northern Rock must be stark raving mad!!!!.

Why?

Just like NS & I it is government backed. Your savings are 100% guaranteed not just £35K.
It cannot go bust now.
Its rate is about 1.2% higher then NS & I.
Savers will get 3 months notice before the guarantee is withdrawn.

Anyone who puts large sums into other banks like ICESAVE, ICICISAVE or the Finnish Banks or even the likes of HBOS, Abbey etc... must be stark raving mad

My HSBC bond matures on 6 March so it looks like I'll miss out. If the rate is still OK then I'll definitely be depositing my money with them.

The Rock is insolvent, its Nationalisation may well be overturned by the EU, in which case it will be thrown to the dogs.


There is no such thing as a free lunch, ask yourself why they are paying such a high rate, is it because they are so successfull they can afford to share a bit of profit around ?

Or are they so fking desperate to replace Libor Funds with Depositors cash, any money will do.

Northern Rock are a washed up, communist enterprise, and that was before the Nationalisation, the Rock is steeped on a tradition of militant unions, and underhand practices.

Its nationalisation cannot be overturned by the EU. If the government do not 'support' NR and savers etc they will be out full stop. Its not as if they have to support it using their own money!!

it's taxpayers so who cares? - £100bn or so better that then look stupid!!

Moderators can you move this to the savings forum please?

I did exactly the same.

I already had £34k in one of their bonds at 6.9%. On Monday, I transferred another £250k.

If you can't trust the British Government, who can you trust?


... err... on second thoughts, don't answer that!

Who cares? Twelve months ago, buying a property was a win, win situation. Investing on the stock exchange was a win, win situation. At last putting your savings in a bank is a win, win situation, because as Daddy.B has pointed out you can't lose. The gov's gold plated guarantees for N.R are so well publicised how can Nu Lab renege on them without giving 3 months notice, by that time my money will be well gone. So tomorrow I'm putting 25K in a N.R savings account. How can I lose?

Up-date on the above

Went in to my local N.R branch, assistant initially said sorry issue 3 now closed Friday. She then said how much do you want to deposit, when I said 25K, she said well we could perhaps push it through as received late Friday. Thats fine by me I said. So now I can relax for 12 months as G.B and that cretin Darling follow the Yanks and slash and burn rates down which surely will happen.

NS & I is TAX FREE

NR is taxable

[quote name='sign_of_the_times' date='Feb 26 2008, 08:52 PM' post='987853']
NS & I is TAX FREE

NR is taxable
[/quote
Your right but 15k!!! I like looking at it on line and sticking it to em when I find something better at the drop of a hat. Times we live in.
Will probably buy a distressed sale and convert to a casino apply for lottery money and set up a creche have NR sponsorship logos on the bibs. Naa..
I thought by locking into nsi east access is gone.