Safe to put my money into Northern Rock?

N

ndp

Registered User
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I will shortly have the proceeds from the sale of my house to invest on a short-term basis (i.e. €450k for about one month, then €60k for about 3 months). I need to be able to access the money on demand.

Northern Rock's Demand Online account seems to give a good rate, but.... Northern Rock?????

I've had a look at their website and it says that the deposits are backed by the Bank of England, but is it safe to put my money in Northern Rock?
 
ndp said:
I've had a look at their website and it says that the deposits are backed by the Bank of England, but is it safe to put my money in Northern Rock?
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Have you not just answered your own question?!

I'm happy to move my few bob from the likes of FA eSavings (5.22%) and Halifax FlexiSaver (5.15%) etc. to NR for February to avail of the current rate of 5% + loyalty bonus of an additional 0.5% (p.a.) for certain customers.
 
ClubMan said:
Have you not just answered your own question?!
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I'm not sure to be honest! It seems to my non-expert eye that it would be ok, but is there a catch or is there something I am missing? That's why I posted on this website!

ClubMan said:
I'm happy to move my few bob from the likes of FA eSavings (5.22%) and Halifax FlexiSaver (5.15%) etc. to NR for February to avail of the current rate of 5% + loyalty bonus of an additional 0.5% (p.a.) for certain customers.
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A 'few bob' is fine, but would you put the value of your house on it?
 
ndp said:
I'm not sure to be honest! It seems to my non-expert eye that it would be ok, but is there a catch or is there something I am missing?
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Not that I can see.
A 'few bob' is fine, but would you put the value of your house on it?
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If the best place for the money was a deposit account for the short term and NR were offering the best rate then - yes.

Of course you can probably do better by splitting the money into < €15K in FA eSavings (5.22%), €10K in Halifax FlexiSaver (5.15%) and the rest in NR (5% or 5.5% p.a. for February if you are an existing customer who qualifies for the 0.5% (annualised!) bonus) for example...
 
ndp said:
I will shortly have the proceeds from the sale of my house to invest on a short-term basis (i.e. €450k for about one month, then €60k for about 3 months). I need to be able to access the money on demand.
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If, in Ireland, a financial institution goes bust, you'll receive compensation from the Financial Regulator up to about €20k.
The safest thing to do is spread the money around (eggs and baskets and all that).

ndp said:
Northern Rock's Demand Online account seems to give a good rate, but.... Northern Rock?????
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Yeah, dodgy. It must be a very badly run bank for something to happen like their crisis last year, the bank run and all that. If the powers that be in NR allowed that to happen, it hardly inspires confidence in their abilities.

ndp said:
I've had a look at their website and it says that the deposits are backed by the Bank of England, but is it safe to put my money in Northern Rock?
Click to expand...

Not your amount, I reckon. Who knows what'll happen in the future. The UK tax payer may not be happy that their money is spent to keep up NR.
The UK tax payer has a vote. Gordon Browne will be facing the voter in the near future and is on a very poor footing at present.

As we know here, the Government is not averse to making pre-election U-turns!
 
N/r's 5% would get you €1500 a month after dirt, Rabo's 4.3%(or similar) would get you €1290, For €210 I would sleep better with Rabo.
 
Received letter from Northern Rock this morning which assures me they are quite safe.
(1) Interest now at 5% for on line demand deposit account, minimum €1,000 and no upper cut off like First Active, AIB, etc so no need to watch limits i.e. €15,000, €10,000 etc.
(2) ''The Bank of England and HM Treasury guarantee arrangements continue to cover all deposits regardless of the amount deposited and applies to all existing and new accounts, including all term deposits for the duration of their term. The guarantee will remain in place during the current instability in the financial markets. Reasonable notice, which will not be less than three months, will be given by HM Treasury of any termination of these arrangements.'' Now what financial institution gives a guarantee as good as that.
 
Basically, you're looking at a high interest rate, a 100% deposit protection scheme & a 3 month+ notice period prior to the reversion of the deposit protection scheme to the standard.

I can accept that
 
Yeah - I'm comfortable with them too. I also didn't follow the herd last September/October.
 
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