Northern Rock Launches Two New Account Options for Savvy Savers

NEWCASTLE UPON TYNE, England, Nov. 15, 2010 /PRNewswire/ -- Northern Rock has launched two new variable rate savings options for customers who want access to their funds, but don't want to compromise on the interest they'll receive.

Rainy Day Saver is a new 120-day notice account, paying 2.90% gross/AER pa variable, which includes a 1.50% gross/AER pa bonus payable for 12 months from account opening. Longer term, the interest rate is also guaranteed to be no less than the Bank of England base rate until 30th June 2013. Rainy Day Saver is available to open by post or telephone with a minimum initial deposit of 5,000 pounds, and can be operated by post.

Rainy Day Saver allows charge-free withdrawals and transfers (minimum withdrawal is 500 pounds unless closing the account) provided 120-days notice is given (there is a 35 pound fee for transfers via CHAPS). Withdrawals and transfers cannot be made from the account before the expiry of the 120-day notice period.

The account has a minimum balance of 5,000 pounds and the interest rate will fall to Northern Rock's prevailing rate of interest (currently 0.1%) for the duration of any period the balance of the account falls below 5,000 pounds.

Additional deposits (500 pound minimum) and transfers can be made to the Rainy Day Saver, up to a maximum of 2 million pounds per customer. Interest, which can be added to the account or paid into another account, is paid annually on 30 June, or for those who prefer a monthly option, on the last day of the month (available first business day of the following month).

Save Up is a new postal savings account which allows charge-free and notice-free access of one withdrawal (1 pound minimum) per calendar month (there is a 35 pound fee for withdrawals via CHAPS). It pays 2.60% gross/AER pa variable, which includes a 1.50% gross/AER pa bonus payable for 12 months from account opening. Longer term, the interest rate is also guaranteed to be no less than Bank of England base rate until 30th June 2013.

Save Up is available to open by post or telephone with a minimum initial deposit of 1 pound, and can be operated by post.

Additional deposits (1 pound minimum) and transfers can be made into Save Up, up to a maximum of 2 million pounds per customer. Interest, which can be added to the account or paid into another account, is paid annually on 31 December (available three business days later if sent by BACS to an external account), or for those who prefer a monthly option, on the last day of the month (available first business day of the following month or three business days later if sent by BACS to an external account).

Northern Rock's Customer and Commercial director Andy Tate said: "Both Save Up and Rainy Day Saver offer customers the best of both worlds by providing them with access to their savings without losing out on a leading rate of interest.

"We expect these latest additions to our expanding variable rate product range to prove extremely popular."

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 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.

SOURCE Northern Rock