Nervous savers flock to Northern Rock

The nationalised bank reported a £17.2bn total retail funding balance at the end of last month, a £3bn increase since the end of June. Northern Rock says it has to pull a number of key products during the period to avoid taking “unfair advantage” of the Government’s support. The bank says although it has not breached its competitive framework, it has lowered savings rates and introduced caps on new deposit sizes to remain compliant. Northern Rock also says it is repaying its Government loan well ahead of target, with the balance now at £11.5bn – a £15.4bn reduction since the start of th...