Northern Rock launches new fixed rate bond issues

Northern Rock is launching two new issues of its Fixed Rate Bond, offering competitive rates for a minimum deposit of £1.

The limited issue Fixed Rate Bonds offer guaranteed rates of 2.75% gross p.a. over one year (Issue 381), or 3.50% over two years (Issue 382). Account holders can choose to have their interest paid annually or monthly (the monthly rate is 0.30% below the gross annual rate).

The new limited issue Fixed Rate Bonds can be opened either by post or through Northern Rock branches and additional deposits can be made during the offer period up to a maximum of £2 million. Neither Issue 381 nor Issue 382 allow any withdrawals or closures during the fixed rate period.

In keeping with Northern Rock's commitment to providing openness, transparency, and fair treatment of customers, full product details are available on application in the Terms and Conditions.

Further product details and application forms are also available on Northern Rock's website northernrock.co.uk/savings/

Interest can be paid annually on 30 November. Alternatively, interest can be paid monthly on the last day of the month (available first business day of the following month). Transfers to the bond are allowed without charge from all Northern Rock variable rate notice and no-notice accounts.

Upon maturity of the bond, accounts will become no notice accounts and customers will be notified of the interest rate. The bond is a limited issue which will be withdrawn without notice once fully subscribed.

Northern Rock Savings Pledge

Northern Rock's Savings Pledge continues to ensure that its savers are kept fully informed of any changes to their accounts. Northern Rock writes to its savers every time it changes the interest rate on their account. In addition, if the account is a notice account and rates are to be reduced, the advance notice will be at least the same as the notice period.