Northern Rock launches fixed-rate bond

Northern Rock has launched a new issue of its fixed-rate bond which offers very competitive savings interest rates.

The new bond is on offer at 2.70 per cent gross AER per annum over one year and is available at Northern Rock branches or by post.

A minimum deposit of £1 must be made to set up the account which allows holders to have their interest paid annually on August 31st or on a monthly basis.

Account holders choosing to have their interest paid monthly will not receive the best savings rates as the monthly rate is 0.30 per cent below the gross annual rate.

Customers can make additional deposits during the offer period up to a maximum of £2 million per customer.

The bond does not allow any withdrawals or closure of the account during the fixed-rate period and is non-redeemable.

Current Northern Rock customers will be able to transfer funds to the bond from all variable rate and no-notice accounts free of charge.

Last month the Nottingham issued a two year fixed-rate bond with a savings interest rate of 3.75 per cent.
 

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2010-09-06 12:46:10 © Moneyextra.com