Northern Rock launches improved E-bonds

Northern Rock has launched two new improved issues of its online fixed rate e-bond account, providing competitive interest rates for those savers who wish to operate their accounts online. E-bond (Issues 7 and 8) will be available from today (Thursday, 14 April).

With a minimum deposit of just £1, customers can benefit from a competitive fixed rate of interest until 20 May 2012 on e-bond issue 7, which pays 3.10% gross*/AER** annually, or choose e–bond issue 8, which pays 4.10% gross*/AER** pa, fixed until 20 May 2014. Monthly interest rate options are also available for both products. Accounts must be opened and operated online and initial deposits can be made online by electronic transfer from another bank or building society.

Account holders can choose to have their interest paid annually (interest is calculated daily) on 5 August, or monthly (the monthly interest rate is 0.30% below the gross* annual rate) on the 7th of the month (available next business day).

Additional deposits to the bonds can be made during the offer period up to a maximum of £250,000 per customer. E-bonds (Issues 7 and 8) are non-redeemable and neither issue allows any withdrawals or closure during its respective fixed rate period. The bonds are offered on a strictly limited issue basis and will be withdrawn without notice once fully subscribed. Once withdrawn, no further deposits will be accepted.

Full product details are available at 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.