Northern Rock’s new fixed-rate bonds
The state-owned bank, Northern Rock has launched two new issues of fixed-rate bonds which offer guaranteed savings interest rates of at least 3.15 per cent. They offer the rate to one-year bonds, or a higher level of interest, 3.5 per cent, to consumers who 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. You can open the bonds either by post or through Northern Rock branches and you will be able to make additional deposits 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.