One would expect that deposits would be paid back in full, even those over the deposit insurance level. Nationwide UK (Ireland) should urgently release a statement confirming this.
Agreed. My point is simply that Nationwide UK (Ireland) should promptly issue a press release confirming that all deposit holders will be reimbursed.
I imagine people will be encouraged to get their money now before NWUK close their branches but for those that don't (or perhaps those with term deposits) the money will move to the UK and they can get a cheque through the post
It could easily turn into a leeds building society which I see is still listed in the best buys section
I dont bank with Leeds Building Society (Ireland)but I presume they just have a phone number that redirects to the UK.
Compare the NWUK-IE rates with [broken link removed]and the we look like a cheap source of funding for the building society
If you think that they will pay out early on term deposits surely they should be front and center on the best buys?
NWUK operate here under EU passporting legislation
Nationwide UK (Ireland) could:
- Wind down their term deposit base over the next 2 years until all term deposits mature or
- Pay maturity interest now and close all accounts or
- Find some way to exit the term deposits before maturity without paying maturity interest. (Surely, not allowed?)
I don't know what they are going to do but if they pay maturity interest up front (which might be the cheapest thing for them to do to avoid 2 years of wind down costs) then term deposit holders are in for an early windfall.
Given our discussion I would have thought a warning in the best buys thread highlighting the uncertainty surrounding NWUKs future here would have been sufficient.
though I appreciate the 2 year horizon is us guessing
Another option we haven't mentioned is they might sell the deposit base.
As for early interest payment I doubt it will be maturity interest more whats accumulated to date.
No value leaving the regular saver account product, notice product and instant access product listed. No point anyone opening a new account with these products. Rate will probably drop to zero shortly before deposits are refunded.
`It is not overly subjective to state that a time that a bank is closing is not an advisable time for most people to open brand new bank accounts. Providing a list of places where people can open a new account (and keep it open!) is the purpose of the best buys
IoM customers with term deposits that matured in the near future, post closure, had to wait till maturity for payment but those with term deposits that matured at a later date got a letter with "special instructions".
....
Open questions:
- What happens to those that have term deposits that have not yet matured?
- When and how will deposit holders be compensated? .....
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