Thursday, October 02, 2008

Enough Already!

In the brave new world of Euro finance, you don't get uppity and offer too much of a good thing:
Northern Rock, the nationalised bank, has been forced to pull six of its most popular savings products, because they are proving too popular.

....It has been forced to withdraw them after it was deluged with customers trying to open the accounts because all money deposited within them are guaranteed by the Government.

In recent weeks it has attracted lots of interest as nervous savers have pulled money out of institutions they think are failing, and put them somewhere safer.

Northern Rock is one of only three UK high street institutions that can guarantee 100 per cent of their customers' deposits, along with the Government-owned National Savings & Investments and the Post Office.

....In order to stop Northern Rock breaching European competition rules the bank has promised to take no more than 1.5 per cent of the UK retail deposits.

The bank says it is now close to breaching this limit and as a result it has pulled Silver Savings, Silver Savings 30 – accounts aimed at older customers – Business Reserve and a range of Fixed Rate Bonds.

Its move comes after the Post Office and NS&I said they had witnessed a strong increase it the number of customers opening accounts.

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