Northern Rock Annual vs Monthly

N

NorfBank

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Re: Best value lump sum deposits (Euro)

It's probably been posted elsewhere but with Northern Rock the 4% lump sum rate is for an annual interest calculation, it drops to 3.75% for monthly calculation. Of course they only tell you this on the last pages of the online application.
 
Re: Best value lump sum deposits (Euro)

NR tell you this on their [broken link removed]! Every bank that pay interest monthly offers a lower rate than annual payment. One twelfth of 3.75% is paid each month, so the CAR is actually 3.81%. As it happens, NRs main rate is increasing to 4.15% from 3 Jan 07.
 
Re: Best value lump sum deposits (Euro)

MugsGame said:
NR tell you this on their [broken link removed]! Every bank that pay interest monthly offers a lower rate than annual payment. One twelfth of 3.75% is paid each month, so the CAR is actually 3.81%. As it happens, NRs main rate is increasing to 4.15% from 3 Jan 07.
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Hi There,

If you go for the yearly option and take your money out before a year has passed, how do they calculate the interest?

Thanks!
 
Re: Best value lump sum deposits (Euro)

Hi Cool cat,

I just asked NR! If you close before the year has passed you get the capital + interest portion until that moment in which you close the account. I hope this helps

cool_cat said:
Hi There,

If you go for the yearly option and take your money out before a year has passed, how do they calculate the interest?

Thanks!
Click to expand...
 
Unless you need a monthly income opt for annual interest and get the better rate. As mentioned above you don't lose out if you close the account between annual anniversaries. NR are not trying to scam anybody with this and don't hide the fact that they offer different monthly and annual interest rates. I'm not associated with them other than as a satisfied Demand Online customer.
 
NR also allows you to change the interest details from Monthly to Annual, even after you have set up your account and lodged money with them. Its not apparent if any penalties exist for such a transaction, but I'd imagine not.
 
The terms & conditions should clarify. Obviously there is a "penalty" in that opting for monthly pays a lower rate.
 
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