fixed rate capped bonds - Using This Account

Our Fixed Rate Capped Bond is open to all permanent UK residents aged 14 and over. Only one Fixed Rate Capped Bond can be opened per customer whether this is a sole or joint application.

You can invest any amount from £1 up to the maximum deposit limit of £25,000.

To open a Fixed Rate Capped Bond simply visit your nearest Northern Rock branch with the relevant proof of identity. The branch will provide an application form.

Alternatively, download an application form, print it out, complete, sign and return it, together with your cheque or transfer instructions, to our registered Head Office.

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.

We will send you a Welcome Pack, including a Certificate of Deposit confirming your Account Number and opening balance, when your Account is opened.

Your initial deposit can be made by;

• cash (branch accounts only*);
• cheque (in the interest of security, please make your cheque payable to 'Northern Rock for the account of (insert Account Holder(s) name(s))' and crossed ‘A/c payee only'); or
• transfer from an existing Northern Rock account (any withdrawal restrictions on your existing account may apply).

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 can add to your Fixed Rate Capped Bond as long as it is still available, with any amount from £1 to the maximum deposit limit of £25,000 by:

• transfer from another Northern Rock account - complete a transfer request form and return to our registered Head Office.
• cash (branch account only)^*;
• cheque sent to our registered Head Office with a deposit request form. Please make the cheque payable to ‘Northern Rock for the account of (insert Account Holder(s) name(s))’ and crossed ‘A/c Payee only’. Please also quote your Account Number on the reverse.
• If a deposit results in your Account exceeding the maximum deposit limit we will return the deposit to you in full. This does not include any interest paid if you have requested interest to be added direct to your Account.
• electronic transfer from your bank or building society account. The following details need to be quoted for an electronic transfer:

The following details need to be quoted for a CHAPS transfer from a bank outside the UK:

The Faster Payments Service aims to process transfers in near real time. However, restrictions may apply. For more details of the Faster Payments Service, see the Faster Payments section of Customer Info.

BACS transfers should reach your Fixed Rate Capped Bond Account within three business days after they are sent. CHAPS transfers should reach your Fixed Rate Capped Bond Account the same day they are sent (please note your bank may charge for this service).

Once each Fixed Rate Capped Bond is closed to new investors, you cannot make further deposits. The Fixed Rate Capped Bond may be withdrawn without notice and your cheque returned to you.

Prior to your Bond maturing

You can make withdrawals prior to the maturity of your Fixed Rate Capped Bond, subject to a charge equivalent to 60 days loss of interest on the amount withdrawn. 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.

After your Bond matures

Once your Bond has matured it will become a no notice, variable interest rate Matured Bond operated by post. We will write to you before your Bond matures to let you know what else we have available as well as the interest rate payable on the Matured Bond account. To make a withdrawal from the Matured Bond account, simply send us a withdrawal request form for any amount from £1 upwards to our registered Head Office. We will then send your cheque promptly to your registered address. CHAPS transfers can also be arranged, where the charge will be £35.

If you wish to amend the name, address or interest instructions on your Account, please send a completed Savings account amendment form to our registered Head Office. Please ensure you notify us at least 48 hours before you would like us to make the change.

If you do not need to pay tax on your savings interest, please complete an R85 form for each account you hold with us, 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.

With our fixed rate capped bonds, you can choose to have your interest paid annually or monthly.

• Annual interest can be added to your Fixed Rate Capped 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 one month prior to the maturity of your Bond. You will then receive a further interest payment on maturity.
• 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 Capped Bond. With interest payments sent to another bank or building society account, please allow up to four business days for receipt.

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 the balance falls below £1, interest will be earned at the prevailing basic rate, currently 0.10% gross p.a.

We will inform you of any change to the interest rate on your Account. If your Account is a notice account and the rate is to be reduced, we will give you at least the same notice as is applicable to withdrawals.

For details of our up to date products and current interest rates please visit the savings homepage.

We make charges for some standard services that we make available to you. Full details are available in our savings charges leaflet.

Once your Bond has matured it will become a no notice, variable interest rate Matured Bond operated by post. We will write to you before your Bond matures to let you know what else we have available as well as the interest rate payable on the Matured Bond account.