Northern Rock has announced the launch of a new ‘regular saver’ account, offering customers charge-free access to their savings, and an interest rate of 5% gross, fixed until 1 June 2011.
With the Bank of England’s base interest rate still at a record low of 0.5%, an account paying 5% will look attractive to many consumers. However, keep in mind that it is a regular savings account, and a maximum of just £250 per month, or a total of £3,250 over the 13 month term, can be put into the account. This means that the maximum you could earn over 13 months is £87.66, given that you deposited the maximum possible, and did not make any withdrawals.
The new fixed-rate regular saver accounts can be opened at Northern Rock’s branch network, with a minimum initial deposit of £1, and can be kick-started with cash, cheque or wire transfer.
Notice-free withdrawals (up to one per business day) can be made at any Northern Rock branches. A balance of £1 must be maintained to keep the account active.
Interest is paid annually on October 31, and will be accrued to the account.
The fixed rate regular saver account is a limited issue product. The offer will be withdrawn without notice once it is fully subscribed.