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Rock fixed-rate bonds offering up to 5.35%

Northern Rock has introduced three fixed-rate bonds investing over different periods and a combined fixed-rate bond and equity tracker product called Fifty:Fifty Issue 9.

Its one-year fixed-rate bond offers gross interest of 4.75 per cent until July 1, 2003. It is also offering bonds paying 5.2 per cent until July 1, 2004 and 5.35 per cent until July 1, 2005.

Minimum opening balance is £500. Additional deposits can be made during the offer period up to a maximum of £2m. Northern Rock says all three bonds are limited issues which will be withdrawn without notice once fully subscribed.

The Fifty:Fifty product has a minimum opening balance of £5,000 which is split between a one-year fixed-rate bond paying gross interest of 10 per cent and a five-year equity tracker offering a return of 75 per cent of the growth in the FTSE 100 index. If the index does not rise, investors receive their capital back at the end of the investment period.

Sales and marketing director Andy Kuipers says: “We have increased our fixed rates and launched another innovative Fifty:Fifty product offering a high fixed-interest rate element and a low-risk stockmarket growth potential element.”

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