Northern Rock launches market leading online saver

Northern Rock has added a new online easy access savings account to its range, e-saver (Issue 4). The account pays 3.00% gross* per annum for deposits from £10,000 to £100,000.

E-saver (Issue 4) includes a bonus of 2.00% gross for the first 12 months from opening. Account holders can choose to have their interest paid either annually or monthly (monthly AER** is 2.74%).

This product complements Northern Rock’s existing online offer, e-Saver (Issue 3), which pays a flat 2.50% gross, without any introductory bonus on balances of only £1.

Withdrawals from e-Saver (Issue 4) can be made via a nominated bank or building society account without notice or charge (there is a £35 fee if customers choose to transfer via CHAPS). The minimum withdrawal is £1 for BACS transfers and £250 for withdrawals by CHAPS. Customers are able to view their transaction history online.

Additional deposits can be made up to the maximum balance of £100,000 by electronic transfer from other bank accounts, a transfer from other Northern Rock accounts or by cheque. E-saver (Issue 4) is strictly a limited issue and will be withdrawn without notice.

Full product details can also be found at: northernrock.co.uk

· New e-saver issue 4 interest rate effective from 9th December 2010.
· Maximum balance per account of £100,000.
· Charge-free and notice-free access via nominated account (subject to £35 charge for CHAPS withdrawals).
· Minimum deposit £10,000; maximum £100,000
· Minimum withdrawal amount is £1 for BACS transfers and £250 for transfers by CHAPS. (£35 fee for CHAPS transfers).
· Interest paid annually on 11th March or the 10th of each month (the monthly AER** is also 2.74%).
· Where the balance falls below £10,000, interest will be earned at the prevailing basic savings rate, currently 0.10% gross p.a.
· Only one account per customer and a maximum of two holders per account.

*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.