Northern Rock launches new fixed rate bond issue

Northern Rock is launching a new issue of its fixed rate bond, offering a competitive level of interest rate with a minimum deposit of just £1. The account, which offers 2.70% gross*/AER** pa over one year, is available through Northern Rock branches or by post.

Account holders can choose to have their interest paid annually on 31 August, or monthly (the monthly rate is 0.30% below the gross annual rate) on the last day of the month (available first business day of following month).

Additional deposits can be made during the offer period up to a maximum of £2 million per customer. The Fixed Rate Bond (Issue 408) is non-redeemable and does not allow any withdrawals or closure during the fixed rate period.

Transfers to the bond are allowed without charge from all Northern Rock variable rate notice and no-notice accounts. The bond is offered on a limited issue basis and will be withdrawn without notice once fully subscribed. Once withdrawn, no further deposits into the account will be accepted.

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 at: northernrock.co.uk/savings

*GROSS is the rate of interest paid to eligible non-taxpayers without deduction of tax. Please note interest will be paid net of tax unless you are eligible to receive interest gross and submit the required registration form.
**AER stands for Annual Equivalent Rate and shows what the interest rate would be when interest is paid and added to the capital balance each year.