Two fixed rate e-bond accounts have been launched by the bank Northern Rock. These have highly competitive rates of interest and offer savers who want to keep their accounts online great value. The issues are numbered 18 and 19 and are available from the bank now.
It is very easy for customers to benefit from this competitive rate until late October next year, as the minimum deposit will remain at just one pound. The interest rate is 3% gross. There is also the option of issue 19, this pays .25% more than issue 18, and it is available until October 2014.
The accounts must be opened online and for transfers to them to benefit from the new rates they must have been made electronically. Those who hold this account will be able to choose whether they wish their interest to be calculated monthly or annually. The interest for both of these types will be calculated on a daily basis.
Additional deposits to the bonds can be made during the offer period up to a maximum of £500,000 per customer. The fixed rate bonds (Issues 18 and 19) are non-redeemable and none of the issues allow any withdrawals or closure during their respective fixed rate periods. The bonds are offered on a strictly limited issue basis and will be withdrawn without notice once fully subscribed. Once withdrawn, no further deposits will be accepted.
Full product details are available at Northern Rock’s website at www.northernrock.co.uk/savings.