Should I reinvest with Northern Rock?

S

sherib

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Yesterday I received a letter from N.R. inviting reinvestment. The letter said that "N.R. has agreed an extension of the guarantee arrangements provided by the Bank of England and HM Treasury....This includes all deposits held in N.R. Ireland."

I left the account open but transferred most of my savings to Rabo which, as everyone knows, pays less interest on the balance when it exceeds €10,000. I am very tempted to reinvest with N.R. since I wouldn't lose the interest which would have accrued during the period since withdrawal. Has anyone any advice or comments? If so, much appreciated.
 
Can't speak for others here but I didn't withdraw anything during the run, so I'm certainly content enough for now sticking with them - although I don't require immediate access / availability to my NR savings in the event things were to go bad (again). The guarantee won't last forever either of course.

I'll definitely be keeping an eye on what Rabodirect does after Christmas though; what with their 5% on first €10000 expiring.
 
If you do reinvest with NR before October 31st then they will credit your account with the interest that you would have lost out on if you meet certain conditions.
 
I wasn't aware Robo's 5% interest on the first €10K is expiring at the end of year?
I just thought that was the rate they paid to all saving accounts up to 10K.
 
[broken link removed]
5.0%* Variable CAR. DIRT deductible on total balances up to €10,000.
3.75%** Variable CAR. DIRT deductible on balances from €10, 000 up to €1 million.
Rates effective from 12.03.07 to 31.12.07. Standard variable rate applies thereafter.
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I have reinvested.

I got quite annoyed with BOI, where I stuck my NR withdrawl into a current account. BOI offered me nothing to compare with rabo or NR or First Active's E-saving a/c, but, implied that they were a safer bet than NR or Rabo. I have been working since 1977 and remember how the established banks used to treat us when the cartel operated! I just hope NR get their act together, so that competition can be resumed. Branson may be the man to do it. The likes of BOI, AIB, etc have no right to get on their moral high horses after what's being exposed in their dealings with the two solicitors (Byrne and Lynn)! Greed is good? Taxes are for little people?
 
Thanks for replies and encouragement. I went ahead and reinvested in N.R.
Originally Posted by Carpedeum
BOI, AIB, etc have no right to get on their moral high horses after what's being exposed in their dealings with the two solicitors (Byrne and Lynn)! Greed is good? Taxes are for little people?
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Couldn't agree more. The majority of ordinary people repay their loans with interest++ but its the big borrowers who seem to command more respect and I can't imagine why this is. I sincerely hope it will be the Banks that suffer any losses as a result of those professionals' behaviour. They seem to come down like a ton of bricks on the ordinary punter who gets into trouble with the mortgage.
Originally Posted by ClubMan
If you do reinvest with NR before October 31st then they will credit your account with the interest that you would have lost out on if you meet certain conditions.
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Yes, I realize that. I'll just about make the deadline of 31st October as I didn't transfer electronically till after noon today and this being a Bank Hol weekend N.R. won't get the funds till 30th at the earliest.
 
I've noticed that there are a few posters on this site that go out of their way to undermine Rabodirect in particular raising questions on regulation & stability (deby rating), even their online security.

To these guys, I'd recommend doing a search for "AIB ICI"

e.g.

http://en.wikipedia.org/wiki/Allied_Irish_Banks#Controversy

[broken link removed]

There aren't too many banks that can lay claim to having been bailed out by the Irish tax payer.
 
There's a very encouraging reply by Dominic Coyle to a reader's question in Friday's Irish Times. According to him Northern Rock "currently ranks as the safest financial institution in these islands in which to invest your money". He further wrote that "no Irish bank including Rabobank is exposed the way that N.R. was."

While with Irish banks only the first €22,222 is covered, (maximum compensation of €20,000), in the Netherlands where Rabo is registered, the first €20,000 is guaranteed 100% with 90% of the next €20,000 similarly covered. He also wrote that after N.R., the chancellor of the exchequer said he would guarantee 100% of the first £35,000 saved. I'm not sure but presume that means the Euro equivalent.

I wasn't aware of any posters on this thread or on AAM undermining Rabobank especially since it is one of the largest financial institutions in the Netherlands. I went back to N.R. because Rabo's savings rate is only 3.75% after deposits of €10,000 and of course that amount is still with Rabo.:)
 
sherib said:
Yes, I realize that. I'll just about make the deadline of 31st October as I didn't transfer electronically till after noon today and this being a Bank Hol weekend N.R. won't get the funds till 30th at the earliest.
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What about doing a same day transfer (there may be a charge for this), writing a cheque and dropping it in, etc.?
 
rmelly said:
I've noticed that there are a few posters on this site that go out of their way to undermine Rabodirect in particular raising questions on regulation & stability (deby rating), even their online security.
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I haven't noticed any such trend.
 
With regard to reinvesting......... well what annoys me most about NR now is the 'We're Open' on their web page... yet I am still having major difficulties trying to log into my account most of the time.
 
I haven't any problems that I didn't have before the recent kerfuffle - i.e. usually a very long delay getting through one or more of the login security question screens before getting into the account proper.
 
rmelly said:
I've noticed that there are a few posters on this site that go out of their way to undermine Rabodirect in particular raising questions on regulation & stability (deby rating), even their online security.
Click to expand...

Where did you see that? I have seen people ask since Robo and Northern Rock have the same kind of online operation in this country which is fair enough. Never noticed some kind of anti Rabo bias
 
I have not managed to get in for a couple of weeks.... when I get to the security question I get " We regret that this service is currently unavailable. Please try again later, or telephone our administration office on (01) 480 6050 for further assistance. Opening hours 09.00am - 17.00pm (GMT) Mon - Fri"

ninsaga
 
Originally Posted by ClubMan
What about doing a same day transfer (there may be a charge for this), writing a cheque and dropping it in, etc.?
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I couldn't do that since Rabobank don't offer that facility - Northern Rock does which is very handy. It's irrelevant now since the money is hovering in cyberspace since Friday. If I'd used the cheque route I'd still have had to transfer to AIB first so it was easier to do a direct electronic transfer to N.R. In any event Rabo's address is a PO Box No. so where would one drop it in?

AFAIK and to the credit of both Rabo and Northern Rock there is no limit on the amount that can be transferred daily, unlike AIB where there's a limit of €5,000 daily that can be transferred electronically. That seems to be a smart rule by AIB allowing them to hold onto one's money a little longer - especially when multiplied by thousands.

It is a bit slow getting into my N.R. account but I have never failed to get it when I wait a while after each of the Qs.
 
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Sorry - I overlooked the fact that you were transferring from Rabo. Do they not have any way to get your hands on your own cash faster than that? As an account holder I should know but I don't!
 
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