Northern Rock launches new fixed rate savings bonds

Northern Rock has launched a series of new fixed rate bonds with terms of 1, 3 and 5 years, providing customers with choice on how long they wish to invest their savings for.

With a minimum deposit of just £1, the new accounts are available to open through Northern Rock branches, by telephone or by post from 2pm today (Tuesday 11 January). Additional deposits can be made during the offer period of each issue, up to a maximum of £2 million per customer.

Five year fixed rate notice bond

The new five year fixed rate notice bond (FRNB) pays a competitive interest rate of 4.30% gross/AER pa providing customers with a guaranteed return over the five years. Should customers require access to their savings during the fixed rate period, the FRNB allows charge-free access when notice of 180 days is given. Funds cannot be withdrawn outside of the notice period.

Interest can be paid annually on 31 January, or for those who prefer a monthly option, on the last day of the month (available first business day of the following month).

One and three year fixed rate bonds

For customers looking to invest their savings over a shorter period, Northern Rock has also launched two new issues of its fixed rate bond (FRB Issues 420 and 421) with competitive interest rates of 2.95% gross/AER pa over one year (Issue 420), and 3.70% gross/AER pa over three years (Issue 421).

The FRBs are non-redeemable and do not allow any withdrawals or closure during their respective fixed rate periods.

Interest can be paid annually on 30 November, or for those who prefer a monthly option, on the last day of the month (available first business day of the following month).

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