Should I reinvest with Northern Rock?

ninsaga said:
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.
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Yeah, despite the problems experienced during the 'run' there seems to have been absolutely no improvement made to the workings of their website. I have money in Rabo for easy access and just about the rest of my cash in an anglo 30 day notice account which also pays 4.5%
 
There is no disimprovement over how it was before the run either though - at least in my experience. Slow login process as ever but OK once you get in.
 
I agree. Their site is working exactly as it was before. It was always slow, but reliable. Also i transferred money to it electronically from my clearing bank, and showed up exactly on the second day, which was good to gain the interest back to September 14th.
 
Even though I did not withdraw any savings during the crisis I got two of these letters (asking me to reinvest if I had withdrawn savings) from NR about a month apart.

Looks like they wrote to everybody which seem like a waste of money to me when they should be trying to reduce costs. I e mailed them about it 26 Oct but got no reply.
 
Maybe it would have cost them more to trawl through the customer database to target only those who had withdrawn money?
 
I thought about that and I asked them about it in the e mail but like I say they did not reply.

This might seem like a petty issue to some people talking about postage and printing etc for unnecessary letters but I think they should be trying to save money wherever they can at the moment. If I get a reply from them I will post the details here.
 
You might be better of writing to them. I find that many companies don't bother answering emails but they do answer letters. If you're really concerned about this then you should consider buying at least one share in the company so that you can make your views known at a company general meeting.
 
Anyone watch the BBC2 Money Programme (7pm 9/11/07) Northern Rock, Northern Crock. Didn't make for pretty viewing. One thing they said is that there probably has been a "silent" run on the bank since the crisis with a lot of people taking their money out. Mine is still in there.

http://news.bbc.co.uk/2/hi/business/7086473.stm
 
Personally, I split my money to amounts less than €20k. Put these groupings into new accounts.
First Active and Ulster Bank are giving great rates at present.
 
Yes, and what's more, the UK scheme covers 100% up to that amount for each different banking group. Unfortunately, our deposit protection scheme doesn't. So it makes no difference whether one deposits amounts of €20k among different banks, you're only covered for the same amount no matter how many banks you hold accounts with. It's really inadequate when you look at the UK and Dutch schemes. Doesn't look like it's going to be improved any time soon either.
 
Nemesis said:
Yes, and what's more, the UK scheme covers 100% up to that amount for each different banking group. Unfortunately, our deposit protection scheme doesn't. So it makes no difference whether one deposits amounts of €20k among different banks, you're only covered for the same amount no matter how many banks you hold accounts with. It's really inadequate when you look at the UK and Dutch schemes. Doesn't look like it's going to be improved any time soon either.
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Are you sure? That doesn't make any sense. If I have €20,000 in both AIB and BOI and both go bust I must be covered for both.
 
Sunny said:
Are you sure? That doesn't make any sense. If I have €20,000 in both AIB and BOI and both go bust I must be covered for both.
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It's my understanding from the posts I've read here in the past that you're not. Though after searching the forum for a bit I must admit I'm finding it hard to track them down. The Financial Regulator isn't much help either as it doesn't explicitly state what the position is regarding accounts with different institutions.

The maximum amount you can get under the schedule is 90% of all deposits subject to a maximum compensation payment of €20,000.

This means that that even if you have an amount greater than €20,000 in your deposit - for example €45,000 - you will only be entitled to a maximum of €20,000.
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In the absence of this information, I would read 'all deposits' as being just that - all deposits with all banks. One can't just assume it applies to each different bank. If you look at the UK scheme it states:

What is the position for people who have multiple accounts with banks that are subsidiaries of another bank?

We have received some enquiries about how we would apply the compensation limits to people who hold multiple accounts in banks that are part of a larger group such as Halifax Bank of Scotland. If each of the banks is separately authorised by the Financial Services Authority:

FSCS would pay compensation up to the limit of £35,000 per person, per authorised institution.

If each of the banks is not separately authorised but is covered by the parent company's authorisation:

FSCS would pay compensation up to the limit of £35,000 once, irrespective of how many different institutions a person held accounts with.
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If someone can provide information which proves my interpretation is wrong, I'd be happy to see it. It's important to get a definitive answer on this issue.
 
Hey guys,

from the financial regulator:
Compensation limits
The maximum amount you can get under the schedule is 90% of all deposits subject to a maximum compensation payment of €20,000.

..."All deposits"???:eek: My God Nemesis is right!!!
 
Godfather said:
Hey guys,

from the financial regulator:
Compensation limits
The maximum amount you can get under the schedule is 90% of all deposits subject to a maximum compensation payment of €20,000.

..."All deposits"???:eek: My God Nemesis is right!!!
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I presume it is 90% of all deposits within one institution if you have more than one account. Doesn't make sense otherwise

I will try and find some confirmation
 
Godfather said:
Hey guys,

from the financial regulator:
Compensation limits
The maximum amount you can get under the schedule is 90% of all deposits subject to a maximum compensation payment of €20,000.

..."All deposits"???:eek: My God Nemesis is right!!!
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So, would it make sense to have 1 irish, 1 dutch ( Rabo), 1 danish (NIB) and 1 british ( halifax or NR) savings account then, so that each tranche is covered by a different government insurance scheme?
 
Sunny said:
I presume it is 90% of all deposits within one institution if you have more than one account. Doesn't make sense otherwise

I will try and find some confirmation
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I agree. It doesn't make sense and it certainly should be 90% (100% even) of all deposits within one institution but that doesn't mean that it is the case. Like I said, this has come up before and although there were differing opinions, it's my recollection that the final conclusion was always it applied to all deposits in all institutions. But perhaps we never arrived at a truly definitive answer and weren't overly concerned (This was before we came to realise that deposits might not be totally secure).

rob30 said:
So, would it make sense to have 1 irish, 1 dutch ( Rabo), 1 danish (NIB) and 1 british ( halifax or NR) savings account then, so that each tranche is covered by a different government insurance scheme?
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Not a bad idea in these uncertain times.
 
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