Northern Rock withdraws products

Oct 2 2008 by Henryk Zientek, Huddersfield Daily Examiner

NORTHERN Rock today withdrew some of its savings products for new customers in a bid to ensure it does not have an unfair advantage from state ownership.

The rush of consumers looking for safer places for their savings placed Northern in danger of exceeding a 1.5% cap on its share of UK retail deposits.

The nationalised lender said the turmoil in financial markets had led to a “sizeable” inflow of deposits, particularly in the past few days.

Products withdrawn to new customers from today include Silver Savings, Silver Savings 30, Business Reserve and some fixed rate bonds.