newsroom
back to newsroom07/07/2010 Northern Rock launches four new fixed rate bond issues
- 3.00% gross pa/AER fixed until 1 August 2011 (Issue 398)
- 3.50% gross pa/AER fixed until 1 August 2012 (Issue 399)
- 4.05% gross pa/AER fixed until 1 August 2013 (Issue 400)
- 4.25% gross pa/AER fixed until 1 August 2015 (Issue 401)
Northern Rock is launching a new range of fixed rate bonds, offering four levels of competitive interest rates starting from 3.00%* gross p.a./AER over one year to 4.25%* gross p.a./AER over five years. The accounts are available to new customers from today (June 7) and for existing customers with savings accounts that mature on August 1.
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 fixed rate bonds can be opened either by post or through Northern Rock’s branches. Additional deposits can be made 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 the fixed rate periods.
Interest can be paid annually on 30 June or paid monthly on the last day of the month (available first business day of the following month). Transfers to the bonds are allowed without charge from all Northern Rock variable rate notice and no-notice accounts. The bonds are offered on a limited issue basis and withdrawn without notice once fully subscribed. Once withdrawn, no further deposits will be accepted.
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 44 66
- Further product details and application forms are also available on Northern Rock’s website at www.northernrock.co.uk/savings
- Branch locations are available at www.northernrock.co.uk/contact
Northern Rock’s New Fixed Rate Bonds
| NORTHERN ROCK FIXED RATE BOND - ISSUE 398 | % GROSS* RATES (Maturity date 1 July 2011) | |
|---|---|---|
| ANNUAL GROSS/AER** | MONTHLY | |
| £1+ | 3.00% | 2.75% (2.78% AER**) |
| NORTHERN ROCK FIXED RATE BOND - ISSUE 399 | % GROSS* RATES (Maturity date 1 July 2012) | |
|---|---|---|
| ANNUAL GROSS/AER** | MONTHLY | |
| £1+ | 3.50% | 3.25% (3.29% AER**) |
| NORTHERN ROCK FIXED RATE BOND - ISSUE 400 | % GROSS* RATES (Maturity date 1 July 2013) | |
|---|---|---|
| ANNUAL GROSS/AER** | MONTHLY | |
| £1+ | 4.05% | 3.75% (3.81% AER**) |
| NORTHERN ROCK FIXED RATE BOND - ISSUE 401 | % GROSS* RATES (Maturity date 1 July 2015) | |
|---|---|---|
| ANNUAL GROSS/AER** | MONTHLY | |
| £1+ | 4.25% | 3.95% (4.02% AER**) |
No closure or withdrawals are permitted before maturity
*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.
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.
Notes to Editors
Northern Rock plc is a new bank, authorised by the FSA as a deposit taker and mortgage lender from 1 January 2010. It holds and services around £19 billion of savings balances and £10 billion of mortgage accounts. It offers new savings and mortgage products.
Media Contacts
Jule Wilson
Nigel Charlesworth
Tel: 0191 279 4676
Fax: 0191 279 8988
E-mail: press.office@northernrock.co.uk
Important Notice
Northern Rock plc Registered in England and Wales under company number 6952311. Registered Office: Northern Rock House, Gosforth, Newcastle upon Tyne, NE3 4PL. Authorised and regulated by the Financial Services Authority.