March 12, 2008

Unfair competition from Northern Rock

From The Guardian:
Northern Rock offers a number of table-topping accounts, including an online account aimed at the over-50s paying 6.49% and a fixed-rate cash Isa with a rate of 6.2%. Its one and three-year fixed-rate savings bonds paying 6.45% and 6% respectively are also listed as best buys on the website of the financial data provider Moneyfacts.

Not only are the interest rates good, the state-owned Northern Rock, unlike other high street banks and building societies, can offer its customers a guarantee that any money in its accounts - whether it is £1 or £1m - is 100% secure.

The bank says its customers' cash is "completely safe ... The Bank of England and HM Treasury guarantee arrangements protect all savers in all accounts, regardless of the amount deposited, and applies to all existing and new accounts".
Ugh. "Give us your money. The UK taxpayer will be glad to give you a handsome return on you deposit."

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