Northern Rock launches new range of fixed rate savings bonds

For customers looking to invest their savings over a shorter period, Northern Rock has launched two new issues of its fixed rate bond (FRB) with competitive interest rates of 2.90% gross*/AER** pa over one year (Issue 424), and 3.60% gross*/AER** pa over three years (Issue 425).

With a minimum deposit of just £1, the accounts are available to open through Northern Rock branches or by post from today (Thursday 3 March).

Additional deposits can be made into the bonds during the offer period, up to a maximum of £2 million per customer. The bonds are non-redeemable and do not allow any withdrawals or closure during their respective fixed rate periods. Notice-free transfers are also permitted from all Northern Rock variable rate accounts.

Interest can be paid annually on 28 February, or for those who prefer a monthly option, on the last day of the month (available first business day of the following month).

The bonds (Issues 424 and 425) are strictly limited issues and will be withdrawn without notice once fully subscribed. Once withdrawn, no further deposits will be accepted.

Further product details and application packs for all Northern Rock savings accounts are available at Northern Rock’s website at northernrock.co.uk/savings. Information packs can also be obtained by phoning 0845 600 44 66 (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. Branch locations are available at northernrock.co.uk/contact. No closure or withdrawals are permitted during the fixed rate period

*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.