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This guarantee covers future interest payments, movements of funds between existing accounts, and new deposits into existing accounts. The guarantee will also cover accounts re-opened in the future by those who closed them between Thursday 13 September and Wednesday 19 September, inclusive.

Since it would otherwise be unfair to other banks and building societies, the arrangements would not cover any new accounts set up after 19 September, other than re-opened accounts as set out above.

In the case of wholesale market funding for Northern Rock PLC, the Treasury confirmed that the arrangements would cover:

• existing and renewed wholesale deposits
• existing and renewed wholesale borrowing which is not collateralised

The arrangements would not cover other debt instruments including:

• covered bonds
• securities issued under the 'Granite' securitisation programme
• subordinated and other hybrid capital instruments

The guarantee in relation to Northern Rock PLC will remain in place during the current instability in the financial markets.

Consumer protection and financial compensation

The Financial Services Compensation Scheme (FSCS) is the UK's statutory fund of last resort for customers of authorised financial services firms.  The FSCS can pay compensation if a firm is unable, or likely to be unable, to pay claims against it. This will generally be because it has stopped trading and has insufficient assets to meet claims, or is in insolvency.

Because the Financial Services Authority judges that Northern Rock is solvent, exceeds its regulatory capital requirement and has a good quality loan book, the FSCS is not involved at this stage.

Information on the compensation scheme, including flow charts to help you see whether the FSCS may be able to help with your claim for compensation, are available on the FSCS website.

• Visit the Financial Services Compensation Scheme website Opens new window

• How to complain about a financial product or advice (money, tax and benefits section)