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| Version 2 | Version 3 |
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| Northern Rock cuts savings deals | Northern Rock cuts savings deals |
| (10 minutes later) | |
| Northern Rock has withdrawn a number of savings deals to new customers to ensure it does not abuse any competitive advantage. | Northern Rock has withdrawn a number of savings deals to new customers to ensure it does not abuse any competitive advantage. |
| The nationalised bank is one of few financial institutions that has a 100% guarantee for the safety of customers' savings, as it is government-backed. | The nationalised bank is one of few financial institutions that has a 100% guarantee for the safety of customers' savings, as it is government-backed. |
| On Thursday, it said that it had seen a "sizeable inflow" of deposits in recent days owing to financial turbulence. | On Thursday, it said that it had seen a "sizeable inflow" of deposits in recent days owing to financial turbulence. |
| It must cap its market share of UK retail deposit balances at 1.5%. | It must cap its market share of UK retail deposit balances at 1.5%. |
| This commitment was made as part of the nationalisation deal. | This commitment was made as part of the nationalisation deal. |
| Savings shift | Savings shift |
| There have been widespread reports of savers moving their savings to financial institutions regarded as secure. | There have been widespread reports of savers moving their savings to financial institutions regarded as secure. |
| Each and every government does have an ability to take certain actions themselves, but they must have a look at the broader competitive framework as well Angela Knight, BBA | Each and every government does have an ability to take certain actions themselves, but they must have a look at the broader competitive framework as well Angela Knight, BBA |
| But savers setting up new accounts will generally have to wait a few days before they can put money in. | But savers setting up new accounts will generally have to wait a few days before they can put money in. |
| National Savings & Investments - the government's savings scheme - has a 100% guarantee, in the same way as Northern Rock. | National Savings & Investments - the government's savings scheme - has a 100% guarantee, in the same way as Northern Rock. |
| A spokeswoman for NS&I said its call centre had seen "in increase in volumes of calls" in the last few weeks, but did not provide figures to show the level of the increase. | A spokeswoman for NS&I said its call centre had seen "in increase in volumes of calls" in the last few weeks, but did not provide figures to show the level of the increase. |
| The Anglo Irish Bank said it had received a lot of calls from savers after the Irish government said on Tuesday that it would guarantee all of savers' deposits in six savings groups. | The Anglo Irish Bank said it had received a lot of calls from savers after the Irish government said on Tuesday that it would guarantee all of savers' deposits in six savings groups. |
| In the UK, only the first £35,000 is guaranteed but Prime Minister Gordon Brown said this was planned to be raised to the first £50,000. | In the UK, only the first £35,000 is guaranteed but Prime Minister Gordon Brown said this was planned to be raised to the first £50,000. |
| The British Bankers Association said that official figures for the flow of money out of accounts on Wednesday would not be available for another 10 days. | The British Bankers Association said that official figures for the flow of money out of accounts on Wednesday would not be available for another 10 days. |
| UK payments association Apacs said on Wednesday that no significant peak has been spotted on transactions through the Chaps transmission service. | UK payments association Apacs said on Wednesday that no significant peak has been spotted on transactions through the Chaps transmission service. |
| This service allows money to be transferred from one account to another in a day and is generally used for large sums of money. | This service allows money to be transferred from one account to another in a day and is generally used for large sums of money. |
| Rock cuts | Rock cuts |
| Northern Rock cut its Silver Savings, Silver Savings 30, Business Reserve and a range of fixed rate bonds on Thursday. | Northern Rock cut its Silver Savings, Silver Savings 30, Business Reserve and a range of fixed rate bonds on Thursday. |
| This follows the recent withdrawal of its Fixed Rate Asset Bond and online E-Saver products. | This follows the recent withdrawal of its Fixed Rate Asset Bond and online E-Saver products. |
| "The self-imposed framework is designed to ensure Northern Rock does not take unfair advantage of government support during the period of temporary public ownership," a spokesman said. | "The self-imposed framework is designed to ensure Northern Rock does not take unfair advantage of government support during the period of temporary public ownership," a spokesman said. |
| When it was nationalised, Northern Rock said it would limit its share of retail deposit balances to 1.5% of the market in the UK and 0.8% in Ireland. Its share of gross new mortgage loans would also be no more than 2.5% of the UK market, it said. | When it was nationalised, Northern Rock said it would limit its share of retail deposit balances to 1.5% of the market in the UK and 0.8% in Ireland. Its share of gross new mortgage loans would also be no more than 2.5% of the UK market, it said. |
| A number of media commentators advised savers to turn to Northern Rock at the weekend. Northern Rock does not advertise its 100% guarantee. | A number of media commentators advised savers to turn to Northern Rock at the weekend. Northern Rock does not advertise its 100% guarantee. |
| 'Competitive framework' | 'Competitive framework' |
| Meanwhile, banking analyst Leigh Goodwin, of Fox Pitt Kelton, said that UK banks were clearly disadvantaged by the moves by the Irish government. | Meanwhile, banking analyst Leigh Goodwin, of Fox Pitt Kelton, said that UK banks were clearly disadvantaged by the moves by the Irish government. |
| I know it is selfish but I am concerned about what is happening 'Savings switcher' David Roots | |
| Alex Potter, Collins Stewart banking analyst, said that regulators needed to take a strong lead on the situation. | Alex Potter, Collins Stewart banking analyst, said that regulators needed to take a strong lead on the situation. |
| Angela Knight, of the BBA, told the BBC: "There is some evidence that savings are moving round, we have absolutely no problem with that. | Angela Knight, of the BBA, told the BBC: "There is some evidence that savings are moving round, we have absolutely no problem with that. |
| "But what we are saying is that each and every government does have an ability to take certain actions themselves, but they must have a look at the broader competitive framework as well - the two are not inconsistent with each other." | "But what we are saying is that each and every government does have an ability to take certain actions themselves, but they must have a look at the broader competitive framework as well - the two are not inconsistent with each other." |
| The Treasury said on Thursday that it was in touch with its European counterparts. | The Treasury said on Thursday that it was in touch with its European counterparts. |