Northern Rock has introduced a new one year fixed rate bond, the 33rd version of the product that the company has produced.
The bond has a gross interest rate of 7.25 per cent a year and does not allow any withdrawals at all before the one-year maturity date. It is aimed at investors who are prepared to lock their money away for twelve months.
Fixed rate bond is a limited issue and will be available from September 1, 2000, until it is fully subscribed. Interest can be paid annually or monthly, depending on what the investor requires.
The fixed rate bond's rate of 7.25 per cent is extremely competitive when compared to some of the other products on the market. The Bank of Scotland offers the fixed rate bond, with the same features and a fixed rate of seven per cent.