Northern Rock launches new fixed rate savings bond

Northern Rock has launched a new issue of its Fixed Rate Notice Bond (FRNB), which offers savers the flexibility of a competitive, long-term fixed interest rate, along with planned access to their funds.

With a minimum deposit of just £1, FRNB (Issue 2) is available to open through Northern Rock branches, by telephone or by post from today (Thursday 10 March). Paying a competitive interest rate of 4.00% gross/AER pa, the bond provides a guaranteed return over a five-year period. Should customers require access to their savings during the fixed rate period, the FRNB allows withdrawals and transfers provided 180-days’ notice is provided. Funds cannot be withdrawn outside the notice period.

Additional deposits and transfers into the account (minimum £1) can be made during the offer period up to a maximum of £2 million per customer. Interest can be paid annually on 28 February, and can be added to the account, or paid into another account. For those who prefer a monthly option, interest, which must be paid into another bank or building society account, is paid on the last day of the month (available first business day of the following month).

The FRNB is strictly a limited issue and can be withdrawn without notice once fully subscribed. Once withdrawn, no further deposits will be accepted.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.