Northern Rock launches new fixed-rate bonds

Northern Rock has launched two new issues of its fixed-rate bond which offer guaranteed savings interest rates of at least 3.15 per cent.

The state-owned bank offers the rate to one year bonds, or a higher level of interest - 3.5 per cent – to consumers wishing to put their money away for two years.

Account holders can choose to have their interest paid annually or monthly, although the latter rate is 0.3 per cent lower than the former.

The bonds can be opened either by post or through Northern Rock branches and additional deposits can be made during the offer period up to a maximum of £2 million.

When the bond matures, they will become no notice accounts and all savers will be notified of the interest rate paid.

Last month, the Treasury removed the 100 per cent guarantee on Northern Rock savings, in a move welcomed by other UK lenders.

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2010-03-09 13:21:32 © Moneyextra.com