New Stepped Fixed Rate Bond Issues from Northern Rock

Northern Rock is launching new issues of its Stepped Fixed Rate Savings Bonds, offering competitive rates for a minimum deposit of £1. Stepped Fixed Rate Savings Bonds (Issues 13 and 14), offer increasing interest rates, each of which are fixed for a 12 month period and will be available to open from Thursday 4 March, 2010.

The two new limited issue Stepped Fixed Rate Bonds (Issues 13 and 14) offer guaranteed returns at competitive rates; starting at 3.50% gross p.a. for Year 1, and rising to 4.50% over three years (Issue 13) or to 5.50% over five years (Issue 14). Account holders can choose to have their interest paid annually or monthly (the monthly rate is 0.30% below the gross annual rate).

The two 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.

The Stepped Fixed Rate Bonds are non-redeemable and neither Issue 13 nor Issue 14 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.

Interest can be paid annually on 28 February. Alternatively, interest can be paid monthly on the last day of the month (available first business day of the following month). Transfers to the bonds are allowed without charge from all Northern Rock variable rate notice and no-notice accounts.

Upon maturity of the bonds on 1 April 2013 (Issue 13) or 1 April 2015 (Issue 14), accounts will become no notice accounts and customers will be notified of the interest rate. Both bonds are limited issues, which will be withdrawn without notice once fully subscribed.

Further product details and application forms, visit northernrock.co.uk/savings.