Fixed rate bonds introduced by Northern Rock

Nationalised bank Northern Rock recently announced last week that it has future plans to broaden its financial offerings by soon launching a line of fixed-rate bonds.

These new financial offerings from Northern Rock will be available to consumers either by coming into a bank branch or by post, and will at their inception have a three per cent gross per annum rate for their inaugural year.  Additionally 4.15 per cent gross yearly rate fixed rate bonds will also be available over the same period of time.

The Northern Rock fixed-rate bonds can pay interest either annually, or on a monthly basis; however, industry experts were quick to point out that all of the new bonds, regardless of interest rate, disallow any closures or withdrawals whilst during the time frame of their fixed rate.  Moreover all the bonds are non-redeemable as well during that time.

In a statement issued from the lending institution, the new deals Northern Rock is offering to its customers reflect its adherence to its policy of transparency, fair treatment, and openness in regards to its banking practises.

Northern Rock, not on anyone’s short list for best business bank account providers, gained a high degree of notoriety during the the credit crisis, when it became the first UK bank in over 150 years to suffer a bank run due to consumers’ panic over the prospect of the bank going into receivership; industry insiders say that the bank’s new focus on transparency is most likely an attempt to rebuild its heavily damaged public image since the darkest days of the economic crisis.

In other news, a new statement released recently from financial information site Moneyfacts.co.uk declared that in the current post-recession economic climate, short term fixed rate bonds offer positive saving opportunities due to their high interest rates, as more traditional savings sources are suffering due to an inflation rate that currently exceeds the BoE’s 2 per cent target.

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