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Northern Rock rolls out 7% fixed bonds

Northern Rock has launched three new fixed-rate bonds.

The limited-issue bonds, available in one-, two- or three-year terms offer 7 per cent gross annual rate and a minimum balance of £1,000. Additional minimum deposits of £1,000 can be made during the offer period up to a maximum of £2m.

Interest is paid annually on June 30 or monthly on the first working day of the month.

Any withdrawals during the fixed rate period incurs a loss of 60, 90 or 120 days&#39 interest to holders of one-, two- or three-year bonds respectively.

When bonds mature, withdrawals can be made without notice or penalty.

Assistant marketing director Clare O&#39Neill says: “Consumers like the certainty of knowing what the rates are going to be and there is some uncertainty in the market as far as interest rates are concerned. More and more consumers are looking for contractual relationships either on fixed rate or on tracker products and this is becoming the case across all the financial services.”

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