Northern Rock launches new Fixed Rate Bond issues

Northern Rock has launched four new issues of its fixed rate bond (FRB) with interest rates of 2.40% gross/AER pa over one year (Issue 434), 2.80% gross/AER pa over two years (Issue 435), 3.30% gross/AER pa over three years (Issue 436) and 3.80% gross/AER pa over five years (Issue 437).

With a minimum deposit of just £1, the accounts are available to open through Northern Rock branches, by telephone or by post from today (Wednesday 6 July).

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 30 June, 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The bonds (Issues 434, 435, 436 and 437) are strictly limited issues and will be withdrawn without notice once fully subscribed. Once withdrawn, no further deposits will be accepted. Upon maturity the account will become a no notice matured bond account and investors will be notified in writing upon maturity, of the interest rate payable.