Savings FAQs

Fixed Rate Bonds and Fixed Rate Capped Bonds are Savings accounts which guarantee the rate of interest for the full term of your investment.

A Stepped Fixed Rate Bond gives you a guaranteed rate of interest for the full term of your investment, just like a Fixed Rate Bond / Fixed Rate Capped Bond. However, with a Stepped Fixed Rate Bond, the interest rate is guaranteed to increase each year for the term of the account.

With our current range of Stepped Fixed Rate Bonds you can choose to fix your interest rate over either three or five years. Please refer to the summary box for full details.

All Bonds are open to all UK residents over 14 years of age and can be opened by an individual or jointly by up to four people.

Only one Fixed Rate Capped Bond Issue can be opened per customer whether this is a sole or joint application.

For all other Fixed Rate Bonds and Stepped Fixed Rate Bonds, multiple issues per customer can be opened.

You can choose to open your Bond in any of the following ways:

Post

There are three options for you to choose from if you wish to post your application form to us:

• complete the online application form, print and sign it, then return it together with your cheque* or transfer instructions, to our registered Head Office;
• download an application form, complete and sign it, then return it together with your cheque* or transfer instructions, to our registered Head Office;
• request an application form by submitting your details and we will post one out to you.

You will not need to send proof of identity with your application, but you may be asked to supply identification at a later date. The requirements will be outlined in a letter sent to you after your Account is opened.

Phone

• simply contact us on 0845 600 4466** or request a call back.

Branch

• visit your nearest branch with the relevant proof of identity and the branch will provide you with an application form.

Once your Account is opened, we will send you a Welcome Pack, including a Certificate of Deposit which confirms your Account Number and opening balance.

Please ensure that you have read and understood the terms and conditions, rates for this account and summary box before you apply. View our current range of Bonds.

You can begin your application for any of our Bonds by completing an online application form, however you must then print it off and send it to our Head Office using the freepost address provided.

Completing the form online saves you time and ensures we receive all of the information needed to open your Bond.

Only one Fixed Rate Capped Bond can be opened per issue, per customer whether this is a sole or joint application. For standard Fixed Rate Bonds (i.e. not 'capped') there is no restriction on the number you are able to open

If you do not need to pay tax on your savings interest, please complete an R85 form to ensure your interest is paid without any tax taken off, and return these to us either via your local branch or Head Office.

For joint accounts, interest can be paid part net / part gross. So if you don't pay tax, you can still claim gross interest on your share.

You can add to your Bond as long as the issue is still available, with any amount from £1 to the maximum deposit limit.

You have the option to deposit funds into your Account in the following ways:

• to transfer from another Northern Rock account - complete a transfer request form and return it to our registered Head Office;
• cash (branch accounts only)***;
• cheque sent to our registered Head Office with a deposit request form;
• electronic transfer from your bank or building society account.

You may only withdraw funds from your Bond prior to its maturity if withdrawals are permitted as a feature of your Account. Account features are set out in the summary box which forms part of the account Terms and Conditions.

If you wish to make a withdrawal of any amount from £1 upwards, simply complete a withdrawal request form and return to our registered Head Office. We will then send your cheque promptly to your registered address.

We aim to deal with deposits and withdrawal transactions within 24 hours, but we cannot guarantee this. Transactions with queries and general correspondence are likely to take longer.

Cheques

Cheques will be considered cleared on the fourth business day after we process them unless stated otherwise. However, you will start to earn interest on the second business day. You can be certain that the money is yours by the end of the sixth business day. This means that the money cannot be taken from you without your agreement unless you are a knowing party to fraud.

CHAPS Transactions

If we receive your authority and full instructions before 1p.m. on a business day, we will send your payment by CHAPS transfer the same day. Instructions received after 1p.m. or on a non-business day will be processed the next business day;

We cannot guarantee that payments will reach your Account on a set date or time, but anticipate that payments will normally arrive by the close of business on the same day they are sent.

We aim to deal with deposits and withdrawal transactions within 24 hours, but we cannot guarantee this. Transactions with queries and general correspondence are likely to take longer.

How

You can choose to have your interest paid annually or monthly:

• annual interest can be added to your Bond, transferred into any Northern Rock account, or paid by electronic transfer into an account with another bank or building society. Annual interest is paid approximately one month prior to the maturity of your Bond. You will then receive a further interest payment on maturity. Please see the key product information for details.
• monthly interest is usually paid on the last day of the month and available on the next business day. It can be transferred into any Northern Rock account or paid by electronic transfer into another bank or building society. Monthly interest cannot be added to your Fixed Rate Bond.

With interest payments sent to another bank or building society account, please allow up to four business days for receipt.

Your interest is calculated daily and adjusted automatically as the balance in your Account changes. For more information regarding how we calculate interest please refer to our interest calculation leaflet.

Where

Interest can be added to your Bond (where interest is paid annually), transferred into any Northern Rock account, or paid by electronic transfer into an account with another bank or building society. When interest payments are sent to another bank or building society account please allow up to four working days for receipt.

We'll send you an annual statement shortly after each interest payment date and all Bonds receive a statement within one month following maturity. You will also receive a statement upon account closure.

Please send your written request to our Head Office address below, or visit your nearest branch, who will assist in sending the instruction to Head Office.

Savings Department
Northern Rock House
Gosforth
Newcastle-Upon-Tyne
NE3 4PL

Approximately three weeks before your Bond is due to mature, we will write to you giving you all the options available when your Account matures. We will let you know what products we have available as well as giving you the opportunity to add more funds, amend your interest details or send money by cheque or electronic transfer to your bank or building society account.

If we do not hear from you, your Account will become a no-notice Matured Bond. Please see our savings interest rates for further information.