The blanket guarantee on Northern Rock's deposits is to be removed, to allow the company to get ready for the sale of the part-nationalised bank.
In the next few weeks an official announcement of the lifting of the 100 per cent guarantee will be made by the bank.
This final decision will be made by the Treasury, which owns the bank. Northern Rock will be able to return to the private sector once the savings guarantee is cut.
Head of banking at moneysupermarket.com Kevin Mountford told the Telegraph: "The removal of the guarantee helps dispel concerns of Northern Rock having an unfair, competitive advantage, and will in turn enable Northern Rock to offer more attractive products."
Although savers that have under £50,000 on deposit with Northern Rock will not be affected by the change, savers with over £50,000 will feel the effects of the guarantee.
Northern Rock was recently allowed to merge with the buy-to-let mortgage of Bradford & Bingley after the European Commission approved the restructuring of the financial services company.
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