Northern Rock launches new savings account to help small businesses
Northern Rock has introduced a new postal savings account, developed specifically to help small businesses.
Business Reserve (Issue 2) will pay monthly interest at a competitive rate, equivalent to 1.50% gross*/AER** pa variable. Alternatively, interest can be accumulated to the account.
Business Reserve is available to sole traders, private limited companies, public limited companies, partnerships and limited liability partnerships. The account can be opened and operated by post with a minimum deposit of £10,000.
The account has a minimum balance of £10,000 and the interest rate will fall to Northern Rock’s basic savings rate (currently 0.1% gross*/AER** pa variable) for the duration of any period the balance of the account falls below £10,000.
Additional deposits (minimum £1,000) can be made into the account, up to a maximum of £2 million and notice-free transfers are permitted from existing Business Saver, Gross Corporate and Net Corporate accounts.
Interest will be paid on the last day of the month (available first business day of the following month), and can be paid to another bank or building society, or accumulated to the account.
Northern Rock customer and Commercial Director Andy Tate said: “Our new Business Reserve (Issue 2) account provides competitive returns for business customers, whilst retaining notice-free instant access.
“It’s the ideal home for surplus funds and our customers can spend time growing their business, safe in the knowledge that their investments will be working hard too.”
• Information packs can be obtained by telephoning 0845 600 4466 (calls are charged at your service provider’s prevailing rate and may be monitored and recorded).
• Full product details are available on application in the Terms and Conditions.
• Further product details and application forms for Northern Rock’s savings range are 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 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