Northern Rock Increases Interest Rate for Online Savers

Oct 14, 2010, 08:20 ET from Northern Rock

NEWCASTLE UPON TYNE, England, Oct. 14 /PRNewswire/ -- Northern Rock has announced that, from Wednesday 13th October, it will increase the interest rate on its online easy access savings account, e-saver (Issue 3).

e-saver (Issue 3) will pay 2.50% gross* per annum for deposits from 1 pound Sterling to 100,000 pounds (the minimum deposit by cheque is 250 pounds). The higher interest rate will be paid to new account applicants and all existing customers. This further enhances Northern Rock's online savings range following the successful launch of Issue 1 of its e-bond in September, which entered 'Best Buy' tables with a market-leading interest rate of 3.00% gross*/AER**.

Unlike many of the highest paying online products available in the current market, e-saver (Issue 3) pays a flat interest rate which does not include an introductory bonus. Savings account holders can also choose to have their interest paid either annually, on 11 March (available the following business day) or on the 10th of each month (the monthly AER** is also 2.50%).

Should the need arise withdrawals can be made via a nominated bank or building society account without notice or charge (there is a 35 pounds fee for transfers via CHAPS). The minimum withdrawal is 1 pound for BACS transfers and 250 pounds for withdrawals by CHAPS. Customers are able to view their transaction history online.

Additional deposits can be made up to the maximum balance of 100,000 pounds by electronic transfer from other bank accounts, a transfer from other Northern Rock accounts or by cheque. e-saver (Issue 3) is strictly a limited issue and will be withdrawn without notice once fully subscribed. Once withdrawn, no further deposits will be accepted.

Full product details are available on application in the Terms & Conditions.

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 you are eligible to receive interest gross and submit the required registration form.

**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.

About Northern Rock Plc

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 mortgage products 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.

Northern Rock plc - Registered in England and Wales (Company No. 6952311).

Registered Office: Northern Rock House, Gosforth, Newcastle upon Tyne, NE3 4PL.

Authorised and regulated by the Financial Services Authority.

Media Contact:

Jule Wilson

Communications Manager

Northern Rock House


Newcastle upon Tyne


0191 279 4676

SOURCE Northern Rock