| Northern Rock - no longer a safe haven |
Date: 15 July 2010 |
From 5.00 p.m. 25th May 2010 savers with Northern Rock will lose their 100% safety net. The guarantee was put in place during 2007 to help avoid what could have been a disastrous run on the bank. As with other banks the safety net will now reduce to the first £50,000 with each applicable institution. When the guarantee was originally introduced many savers switched their money to Northern Rock to take advantage of the guarantee - despite their not offering the best rate. What these savers now decide to do with amounts invested within Northern Rock that exceed the £50,000 remains to be seen.
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