Money in Northern Rock savings accounts "is safer than any other bank on the high street at the moment", one expert believes.
Rachel Lacey, editor of Moneywise Magazine's website, explained that savings accounts with the bank are currently guaranteed 100 per cent by the government.
She added that if the government wanted to withdraw this guarantee on Northern Rock savings accounts, it would have to give three months notice .
However, she did warn that other banks are threatening legal action over the guarantee as they feel it offers a level of protection for the savings accounts that other banks cannot match.
She said: "It will be interesting to see, once this whole process goes through, what happens to the guarantee."
According to the Times, the loans and savings account guarantees offered by the government to the troubled bank mean Northern Rock is underwritten by the tax payer to the tune of £57 billion.
Northern Rock savings accounts safe as house, expert says
Northern Rock savings accounts safe as house, expert says
Thu, 21 Feb 2008
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