Northern Rock has issued its latest range of fixed rate bonds for one, two or three years requiring a minimum deposit of 1.
The three new limited issue bonds will offer guaranteed returns at a rate of 5.5 per cent gross per annum and will be fixed to October 1 2007, 2008 and 2009 respectively.
From today (September 5) account holders will be able to open the bonds by post or through Northern Rock branches and additional deposits can be made up to a maximum of 2m.
Northern Rock says funds can be withdrawn during the fixed rate periods with a charge equivalent to 60, 90 and 120 days’ gross interest on the amount withdrawn to the one, two and three year bonds respectively.
Interest can be paid monthly or annually and transfers to the bonds can be made free of charge from all Northern Rock notice and no-notice accounts.