Northern Rock has too much Money

Northern Rock has been forced to withdraw some of its savings products after worried savers flooded it with money.

Northern Rock was forced to act after the inflow of savings threatened to breach its commitment to not hold more than 1.5% of all UK deposits.

It blamed “recent turbulence in financial markets” for the decision to stop offering several of its high-interest accounts to new customers.

The products withdrawn by Northern Rock today are its Silver Savings and Silver Savings 30 accounts, which both pay a rate of over 5% but are only available to those over 50, its Business Reserve account for corporate customers, and a range of fixed rate onds. Existing customers are not affected by the move.