Rock guarantee no longer 100% solid

SAVERS with Northern Rock are no longer protected by a 100 per cent guarantee on their deposits after the temporary protection was withdrawn on Monday.

The guarantee was introduced when the bank went into state ownership after its collapse in 2007. However, the government said that as the restructured bank is now back on a stable footing the guarantee, criticised by competitors for giving Northern Rock an unfair advantage, could be removed.

Like savers elsewhere Northern Rock customers are now covered for up to 50,000 by the Financial Services Compensation Scheme. However, existing term account holders with Northern Rock will be covered by the full guarantee for the remaining term of the product.