northern rock

All savings in fixed term accounts opened before 24 February 2010, such as Fixed Rate Bonds or Fixed Rate ISAs, retain the Government savings guarantee for the remaining term of the product.

Variable rate accounts, such as Instant Access ISAs or Current Accounts, are no longer covered by the Government savings guarantee.

Northern Rock savings customers have the same level of protection as savers with other FSA authorised banks and building societies under the Financial Services Compensation Scheme.

Northern Rock plc remains in Government ownership.

The guarantee was put in place as a temporary measure during a time of Company and market instability. Since then a great deal of progress has been made and Northern Rock has restructured to create a new, well-capitalised bank which provides customers with a safe home for their savings.

HM Treasury, in consultation with the Financial Services Authority (FSA), reviewed the guarantee and decided that it was no longer required and has been, therefore, removed for existing variable rate and all new savings accounts.

Northern Rock retail savings customers have the same level of protection as savers with other FSA authorised banks and building societies under the Financial Services Compensation Scheme.

Changes to Financial Services Compensation Scheme Limit

With effect from 31 December 2010 the Financial Services Compensation Scheme limit increased from £50,000 per person, to £85,000 per person. Full details are shown below.

Important information about compensation arrangements

We are covered by the Financial Services Compensation Scheme (FSCS). The FSCS can pay compensation to depositors if a bank is unable to meet its financial obligations. Most depositors – including most individuals and small businesses – are covered by the scheme.

In respect of deposits, an eligible depositor is entitled to claim up to £85,000. For joint accounts each account holder is treated as having a claim in respect of their share so, for a joint account held by two eligible depositors, the maximum amount that could be claimed would be £85,000 each (making a total of £170,000). The £85,000 limit relates to the combined amount in all the eligible depositor's accounts with the bank, including their share of any joint account, and not to each separate account.

For further information about the scheme (including the amounts covered and eligibility to claim) please ask at your local branch, refer to the FSCS website www.fscs.org.uk or call 0800 678 1100 or 0207 741 4100.

The Financial Services Compensation Scheme provides cover of up to £85,000 per person in each regulated bank or building society. For customers with more than one account, this cover is apportioned across their accounts, based on the value of savings in each account.

Savings in new accounts are protected under the Financial Services Compensation Scheme. This provides customers with the same level of cover available to savers with other FSA authorised banks and building societies.

We offer a range of attractive savings accounts so if you would like to discuss your savings needs or take a look at our wide range of accounts, please visit our savings page, call into one of our branches, or give us a call on 0845 600 1568. Lines are open 8am to 8pm business days, 8am to 4pm Saturday and 10am to 3pm Sunday. Calls are charged at your service provider's prevailing rate and may be monitored and recorded.