Northern Rock pulls high-paying savings accountsSavers rush to nationalised safe haven halted

02 October 2008

Northern Rock logo

Northern Rock has withdrawn its highest paying savings accounts to new customers because they are too popular.

The nationalised bank has axed its Silver Savings, Silver Savings 30, Business Reserve accounts and a range of fixed rate bonds following the recent withdrawal of its online E-Saver products. 

Its other savings products will be kept under review. Which? has advice about how to protect your savings.

Northern Rock savings

Northern Rock, which was nationalised in February, was forced to withdraw the accounts after it was swamped by applicants hoping to invest in a safe haven bank where all deposits are guaranteed by the government. 

To ensure that it does not take unfair advantage of government support, Northern Rock had previously agreed to limit its share of the UK savings market to 1.5%.

£35,000 savings guarantee

The only other institutions to be 100% guarantee due to backing from the government are National Savings & Investments (NS&I) and the Post Office.
In the UK, only the first £35,000 is guaranteed but the government said this was planned to be raised to the first £50,000.