Northern Rock pulling further accounts

Michelle Slade, analyst at Moneyfacts.co.uk, comments: "It seems that by cutting rates and culling their best paying accounts has not stemmed the stampede of savers rushing to get money into Northern Rock. They have now pulled further products in a move to stop savers searching them out for the 100% guarantee.

"Northern Rock now just has 4 accounts left in its range, Instant Access paying up to 2.25%, Cash ISA paying 4.29%, 30 Day Cash ISA paying 5.50% and Fixed Rate ISA paying 6.00%.

"Northern Rock is dangerously close to the 1.5% deposit level that it agreed not to exceed when it was nationalised. If savers continue to deposit money in Northern Rock then we may see them pulling their savings range altogether.

"What a difference a year makes, last year savers were queuing to get money out, now they all want to get money in!"