Northern Rock rewards loyal savers

Northern Rock has created a brand new account with a great interest rate of 2.90% gross*/AER** pa variable, to reward the loyalty of its savers.

The new Loyalty Saver is initially available exclusively to existing Northern Rock customers whose accounts are due to mature on 1 February 2011. It offers Northern Rock savers the flexibility of access to their funds, without sacrificing a competitive rate of interest.

A 90-day notice account, Loyalty Saver is available to open by transfer of maturing funds with a minimum deposit of as little as £1. The initial transaction will be carried out by phone or by post, after which the account can be operated by post or in branch.

Loyalty Saver allows charge-free withdrawals and transfers (minimum withdrawal is £500 unless closing the account) provided 90-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 90-day notice period.

Additional deposits (£500 minimum) and transfers can be made to Loyalty Saver, up to a maximum of £2 million per customer. Interest is paid annually on 31 July, or for those who prefer a monthly option, on the last day of the month (available first business day of the following month).

Northern Rock’s Customer and Commercial Director Andy Tate said: “Loyalty is important to us, as it is to our customers. We want to reward the loyalty of our savings customers by offering them an exclusive deal which is not available to the wider market.

“Loyalty Saver has been designed specifically with our existing savers in mind as we know that many of them want the freedom to access their savings without losing out on a great rate of interest. We are confident that this attractive new product will provide our customers with the piece of mind that Northern Rock continues to be the right home for their savings.”

For application forms and more information regarding all Northern Rock savings 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.
***NET is the annual rate of interest payable after the deduction of basic rate tax (currently 20%). Interest will be paid net or, subject to the required certification, gross. Where the tax deducted exceeds an investor's tax liability (if any) a claim may be made to HM Revenue & Customs for repayment of tax. For individuals whose income falls within the basic rate band, the tax deducted will match their liability to tax on the interest and they will have no more tax to pay on it. Individuals who are liable at the higher rate(s) of income tax will have to pay additional tax due. For further information please visit: hmrc.gov.uk/individuals/babsi.htm