Direct Saver Fixed Rate Bond Issue 26

The Direct Saver Fixed Rate Bond is open for the personal use of all Republic of Ireland residents aged 18 years or over. It can be opened by individuals or jointly between up to four people.

To open a bond, simply complete an application form, clearly stating the issue number of the bond you wish to apply for. This can be found on the rates and charges page.

Once you have completed the application form, send it to us with the relevant proof of identity for each applicant. For further information on suitable forms of identity please refer to the Confirmation of ID page.

We regret that it will not be possible to open an account unless suitable proof of identity is provided and we may return your investment to you. If you cannot provide the suitable identification documents, please contact our office and we will endeavour to resolve the issue.

Your initial lodgement can be by:

• cheque or bankers draft. 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. Cheques drawn in foreign currency or drawn on a foreign address cannot be accepted;
• transfer from an existing Northern Rock account (subject to any restrictions in the terms and conditions applying to that account); or
• electronic transfer. Once your account is opened we will notify you of your account number and you must then arrange the transfer with your bank or building society.

Please note the bond is a strictly limited issue and will be withdrawn once fully subscribed.

As long as the bond is still available you can add to your investment at any time, with any amount from €1,000 upwards by:

• cheque or bankers draft posted to our Dublin Administration Office;
• transfer from another Northern Rock account (subject to any restrictions in the terms and conditions applying to that account); or
• electronic transfer (you must arrange this directly with your bank or building society).

Please quote the following details:

Your bank or building society sending the funds may require the Bank Identification Code (BIC) and International Bank Account Number (IBAN). Therefore, these details are provided below:

It is important that for all electronic transfers you quote your Direct Saver Fixed Rate Bond account number as the reference as funds cannot be applied to your account without this number.

The maximum total holding with Northern Rock plc is €3 million per depositor. We may be able to accept funds in excess of this amount, subject to prior arrangement.

Please contact us for further information.

With our Direct Saver Fixed Rate Bond your interest is paid either annually or monthly.

• Annual interest is paid on the day of maturity. Interest can be added to your Direct Saver Fixed Rate Bond, transferred into another Northern Rock account (subject to any restrictions in the terms and conditions applying to that account), or paid by electronic transfer to another bank or building society.
• Monthly interest is usually paid on the last business day of the month and available the next business day. It can be transferred to another Northern Rock account (subject to any restrictions in the terms and conditions applying to that account) or paid by electronic transfer into an account in your name with another bank or building society.

If you have requested your interest to be sent to another bank or building society account, please allow up to three business days for receipt. We cannot be held liable if funds are not received by your bank or building society because of the provision of incorrect or incomplete information.

If the balance in your account falls below the minimum balance, our basic savings rate will apply. Please refer to the rates and charges page for further information.

Interest earned will be subject to Deposit Interest Retention Tax (DIRT) at the prevailing rate. If you are eligible you can register to receive gross interest by completing a separate DIRT Exemption Declaration form (DE1 form) for each account you hold. Please contact us for further information. This rate may be subject to change by the Revenue Commissioner.

Prior to Maturity

Withdrawals and closures prior to maturity of your bond are permitted, but will be subject to a charge. Please refer the rates and charges page for details. Any withdrawals will reduce the return on your investment.

To withdraw funds from your account, simply refer to the pack you will receive once your account is open, and fill in the withdrawal section of the Transaction Slip for any amount from €1,000 upwards, then send it to us in one of the envelopes provided.

If you would like to make a withdrawal over the telephone please call the Customer Service Helpline with your password and instructions. You can also give instructions by fax or email and again, your password will be required. All contact details can be viewed on the contact us page.

If the sole account holder dies during the term of the account, the account may be closed and the capital will be returned and any interest paid out can be retained. No early withdrawal charge will be made under these circumstances. Alternatively, the executors or administrators may opt to keep the bond open until maturity to earn potential interest payment.

After Maturity

Once your bond has matured it will become a variable rate no notice Direct Saver Matured Bond. We will write to you before your bond matures to let you know what else we have available, as well as advising you of the interest rate payable on your Matured Bond.

To make a withdrawal from the Direct Saver Matured Bond simply send us a written request for any amount from €1,000 or you can also make withdrawal requests by fax, phone, or email. Please refer to the contact us page for details.

We will then send you your cheque promptly. Alternatively, you can transfer funds after maturity to another Northern Rock account, (subject to any restrictions in the terms and conditions applying to that account), or an account you hold with another bank or building society.

On opening your account we will send you a Welcome Letter, and return your original identification, if applicable. We will send you confirmation automatically after every transaction you make.

We will send you a maturity mailing prior to the maturity of your bond which will provide you with various options for your investment. We will also send you a statement upon maturity of your bond.

You can view the current interest rates on the rates and charges page.

Any contact details provided on your application form will be used to contact you, if necessary. Please ensure you keep us informed of any changes to your address or other contact details.

For each new customer, proof of identity must accompany your application. Please refer to the Confirmation of ID page for details.

Please ensure that you have read and understood this product information, the Savings Terms and Conditions, rates and charges and the Terms of Business before you open an account.

Should you need to contact us please refer to the contact us page.

Our Direct Saver Fixed Rate Bonds are classed as 'non-payment accounts', which means that during the fixed rate period, making payments in and out of your account may be restricted. For example, you may be charged for making withdrawals. After maturity, your account automatically converts to a no-notice account, but we will write to you to confirm details of this. Details of restrictions are contained on this page, in the Savings Terms and Conditions and the rates and charges page.

If you are not happy with your choice of account within 14 days of opening it, we will help you switch accounts. If you wish to take advantage of this 14 day cancellation period please contact our Dublin Administration Office to cancel your account. If you do cancel your account the full amount of your investment, together with any interest earned in accordance with your account details will be returned to you.

You are protected by a combination of the UK Financial Services Compensation Scheme, and the Irish Deposit Guarantee Scheme.

What is the Financial Services Compensation Scheme?

Northern Rock is covered by the Financial Services Compensation Scheme (FSCS). The FSCS can pay compensation to depositors if a bank is unable to meet its financial obligations. Most depositors – including most individuals and small businesses – are covered by the scheme.

In respect of deposits, an eligible depositor is entitled to claim up to £50,000. For joint accounts each account holder is treated as having a claim in respect of their share, so, for a joint account held by two eligible depositors, the maximum amount that could be claimed would be £50,000 each (making a total of £100,000). The £50,000 limit relates to the combined amount in all the eligible depositor’s accounts with the bank, including their share of any joint account, and not to each separate account.

For further information about the scheme (including the amounts covered and eligibility to claim) please contact our Dublin Administration Office, refer to the FSCS website, or call the FSCS on +44 20 7892 7300.

What is the Irish Deposit Guarantee Scheme?

The UK Financial Services Compensation Scheme provides cover of up to £50,000 per person in each regulated bank or building society. The Irish Deposit Guarantee Scheme increases the total level of cover to €100,000 per customer.

For further details on the scheme and the level of cover provided, please visit www.itsyourmoney.ie.

If you have a complaint, you should telephone us or write to us as soon as possible so that we may investigate the circumstances. You can write with details of your complaint to:

The Customer Service Manager,
Northern Rock plc,
First Floor, Block 8,
Harcourt Centre,
Dublin 2

Alternatively you can email us, or raise your complaint by telephone.

If we cannot resolve the complaint to your satisfaction you have the right to refer your complaint to the Financial Services Ombudsman, which provides independent adjudication of complaints. A copy of our Internal Complaints Procedure leaflet is available via the I have a complaint page.