Northern Rock Launches Improved E-bonds

Released on: May 03, 2011, 3:07 pm
Author: Northern Rock
Industry: Financial

Northern Rock has launched two new improved issues of its online fixed rate e-bond account, providing competitive interest rates for those savers who wish to operate their accounts online. E-bond (Issues 7 and 8) will be available from April 2011.

With a minimum deposit of just £1, customers can benefit from a competitive fixed rate of interest until 20 May 2012 on e-bond issue 7, which pays 3.10% gross*/AER** annually, or choose e–bond issue 8, which pays 4.10% gross*/AER** pa, fixed until 20 May 2014. Monthly interest rate options are also available for both products. Accounts must be opened and operated online and initial deposits can be made online by electronic transfer from another bank or building society.

E-Bonds account holders can choose to have their interest paid annually (interest is calculated daily) on 5 August, or monthly (the monthly interest rate is 0.30% below the gross* annual rate) on the 7th of the month (available next business day).

Additional deposits to the fixed rate bonds can be made during the offer period up to a maximum of £250,000 per customer. E-bonds (Issues 7 and 8) are non-redeemable and neither issue allows any withdrawals or closure during its respective fixed rate period. The bonds are offered on a strictly limited issue basis and will be withdrawn without notice once fully subscribed. Once withdrawn, no further deposits will be accepted.

ENDS

About Northern Rock:
Northern Rock plc is a new bank, authorised by the FSA as a deposit taker and mortgage lender from 1 January 2010. It offers savings accounts to customers in the UK and Ireland and mortgages to UK borrowers. New products are offered through both direct channels - including a national branch network - and mortgage intermediaries.

Northern Rock continues to operate within the compensatory measures agreed with the EC as part of the State Aid approval announced in October 2009.

Notes to Editors:
*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 the customer is eligible to receive interest gross and submit the required registration form to Northern Rock.

**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.

PR Contact:
Jule Wilson
Northern Rock House
Gosforth
Newcastle upon Tyne
NE3 4PL
0191 279 4676
www.northernrock.co.uk

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