Northern Rock,new account.

Nomad25

Am I correct in my understanding that once opened with a lump sum, I could add additional amounts at any time [until the bond is closed to new applicants]?

Calchas

Nomad25 wrote: »

Am I correct in my understanding that once opened with a lump sum, I could add additional amounts at any time [until the bond is closed to new applicants]?

It seems so.

Below is a straight lift from the Northern Rock website:

Available to new and existing customers
Fixed rate of interest until 20 January 2009
Withdrawals can be made without any notice or charges
Can be opened with an initial deposit of just £1
Choice of annual or monthly interest
You can even add extra money to your Bond while the Bond is still available to new customers

graham47

Many thanks Froglet.

I'm a bit surprised that as "one of their valued customers" with a Silver Savings account they didn't tell me about this by email !
My application is in the post !

5.7% (fixed for a year) monthly interest with the ability to have this automatically transferred each month to an external account, easy withdrawals if needed in an emergency, is just what I was looking for.

sorry ... just spotted ... I meant 6.7%

Again thanks for bringing this to our attention.

dougs

Optimist wrote: »

You can also transfer it into another Northern Rock account

is that right? I couldn't see anywhere on the website or in the Ts and Cs that says that but if it is correct it makes it more attractive to me.

Edit: Oh yes, I've just spotted it in the Ts and Cs that you can. It's item 4b here

Froglet

The appeal to me is that i can open it by transferring directly from my silver savings account,instead of having to transfer out then send a cheque,and vice versa at the end of the term.

Even those who don't have any other account with Northern Rock and have to have a cheque sent,will surely not let the small loss of interest that ensues,be a factor against this bond.By the time the year is up i fear we will be seeing much poorer fixed rates.I intend fixing an Isa as soon as i can,in April.

moneylover

pem2 wrote: »

The only downside, and as someone else has pointed out on another forum and is shown in the t&c's that all withdrawals are by post and cheque. This could effectively wipe out the extra interest earned on the clearing times etc.

What is the other forum? I am very keen on all money forums so don't want to miss one!

tawse57

Over on the housepricecrash.co.uk forum people who have sold to rent are talking about putting more than the 35K FSA limit into this account as the NR is the only bank in the UK where 100% of all deposits are guaranteed by the Government over and above the 35K FSA limit.

I wonder what other banks wanting savers' savings will do now? Will they be forced to increase their rates?

Froglet

moneylover wrote: »

What is the other forum? I am very keen on all money forums so don't want to miss one!

Hi money lover.This is where i got the original heads up from


http://boards.thisismoney.co.uk/tim/forum.jsp?forum=43 ,though it is not nearly as well used as this one!!

merlinthehappypig

Great spot Op. Thanks.

My only concern would be that they will withdraw this before I can get the money from Sainsburys into my current account and post the cheque off!

Froglet

True,it won't hang around for ever but i should imagine Northern Rock will want as much as possible to help their cause.However,letting us withdraw without penalty is a tad risky for them if they come to rely on it!!