Northern Rock launches new account options for savvy savers
Northern Rock has launched two great new variable rate savings options for customers who want access to their funds, but don’t want to compromise on the interest they’ll receive.
Rainy Day Saver is a new 120-day notice account, paying 2.90% gross*/AER** pa variable, which includes a 1.50% gross*/AER** pa bonus payable for 12 months from account opening. And to provide some peace of mind longer term, the interest rate is also guaranteed to be no less than Bank of England base rate +0.25% until 31st December 2012.
Rainy Day Saver is available to open from today (Tuesday, November 9, 2010) by post or telephone with a minimum initial deposit of £5,000, and can be operated by post.
Rainy Day Saver allows charge-free withdrawals and transfers (minimum withdrawal is £500 unless closing the account) provided 120-days notice is given (there is a £35 fee for transfers via CHAPS). Withdrawals and transfers cannot be made from the account before the expiry of the 120-day notice period.
The account has a minimum balance of £5,000 and the interest rate will fall to Northern Rock’s prevailing rate of interest (currently 0.1%) for the duration of any period the balance of the account falls below £5,000.
Additional deposits (£500 minimum) and transfers can be made to the Rainy Day Saver, up to a maximum of £2 million per customer. Interest, which can be added to the account or paid into another account, is paid annually on 30 June, or for those who prefer a monthly option, on the last day of the month (available first business day of the following month).
Save Up is a new postal account which allows charge-free and notice-free access of one withdrawal (£1 minimum) per calendar month (there is a £35 fee for withdrawals via CHAPS). It pays 2.60% gross*/AER** pa variable, which includes a 1.50% gross*/AER** pa bonus payable for 12 months from account opening. Longer term, the interest rate is also guaranteed to be no less than Bank of England base rate +0.25% until 30th June 2013.
Save Up is available to open from tomorrow (Wednesday, November 10, 2010) by post or telephone with a minimum initial deposit of £1, and can be operated by post.
Additional deposits (£1 minimum) and transfers can be made into Save Up, up to a maximum of £2 million per customer. Interest, which can be added to the account or paid into another account, is paid annually on 31 December (available three business days later if sent by BACS to an external account), or for those who prefer a monthly option, on the last day of the month (available first business day of the following month or three business days later if sent by BACS to an external account).
Northern Rock’s Customer and Commercial Director Andy Tate said: “Both Save Up and Rainy Day Saver offer customers the best of both worlds by providing them with access to their savings without losing out on a leading rate of interest.
“We expect these latest additions to our expanding variable rate product range to prove extremely popular.”
Full product details for both Rainy Day Saver and Save Up are available on application in the Terms & Conditions.
For application forms on all products visit northernrock.co.uk.
*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 to us.
**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.