Existing fixed term accounts will retain the Government guarantee for the remaining term of the product and existing variable rate accounts will retain the guarantee for until 24 May 2010.
The change means that any new accounts opened will now be covered by the FSCS, which provides protection of up to £50,000 per person. Customers with variable rate accounts anbd customers setting up new accounts will be covered by the FSCS.
Northern Rock said the removal of the guarantee shows Northern Rock’s good progress and strong capital and liquidity position. It also ensures that the Company can compete on the same terms as other banks and building societies.
Gary Hoffman, chief executive of Northern Rock, said: “We welcome the Government’s decision to release the savings guarantee, following an appropriate period of notice for our customers. This is another positive step in the right direction and the decision reflects our good progress and the strong capital position of Northern Rock. The Company is returning to a level playing field and our savers will enjoy exactly the same level of protection, under FSCS, as customers of other UK banks and building societies.”
