Are my savings with Northern Rock safe?
Yes. At present, Northern Rock is borrowing money from the Bank of England (£24 billion, so far) to fund its loans.
The Government is also guaranteeing all Northern Rock savings accounts. HM Treasury today said: "Savers in Northern Rock can be reassured that their money is safe."
Will the Bank of England loan continue if Northern Rock is bought or broken up?
The Bank of England credit facility expires in February and the loan will not automatically be available to the new owners
The Bank of England credit facility expires in February and the loan will not automatically be available to the new owners.
However, the Bank of England and the Government are willing to discuss the possibility that the loan can be renewed.
If Northern Rock is nationalised, then all deposits will be backed by the Government, as is the case with National Savings & Investments.