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09/11/2009Northern Rock Launches New Fixed Rate Bond Issue

Please Note: This article pre-dates the company restructure of 01 January 2010

• 4.00% gross p.a. fixed until 1 February 2012

Northern Rock is launching a new issue of its Fixed Rate Bond, offering a competitive rate for a minimum deposit of £1. The new Fixed Rate Bond (Issue 378) will be available to open from today (Monday 09 November, 2009).

The limited issue Fixed Rate Bond offers a guaranteed return at a competitive a rate; 4.00% gross p.a. over two years. Account holders can choose to have their interest paid annually or monthly (the monthly rate is 0.30% below the gross annual rate).

The new limited issue Fixed Rate Bond 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. Issue 378 does not allow any withdrawals or closures during the fixed rate period.

In keeping with Northern Rock’s commitment to providing openness, transparency, and fair treatment of customers, full product details are available on application in the Terms and Conditions.

• Information packs can be obtained by telephoning 0845 600 4466
• Further product details and application forms are also available on Northern Rock’s website www.northernrock.co.uk/savings

Interest can be paid annually on 30 November. Alternatively, interest can be paid monthly on the last day of the month (available first business day of the following month). Transfers to the bond are allowed without charge from all Northern Rock variable rate notice and no-notice accounts.

Upon maturity of the bond, accounts will become no notice accounts and customers will be notified of the interest rate. The bond is a limited issue which will be withdrawn without notice once fully subscribed.

Northern Rock Savings Pledge
Northern Rock’s Savings Pledge continues to ensure that its savers are kept fully informed of any changes to their accounts. Northern Rock writes to its savers every time it changes the interest rate on their account. In addition, if the account is a notice account and rates are to be reduced, the advance notice will be at least the same as the notice period.

Northern Rock’s New Fixed Rate Bonds

No withdrawals are permitted before maturity.

* 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.