Nationalised bank Northern Rock has helped kickstart competition in the savings market by launching a new range of savings accounts . The new savings account being offered by the bank targets savers who prefer using high street branches and who have a small sum to deposit. With an interest rate of 2.5 per cent, the product compares favourably to other branch-based accounts being offered by rival banks . It is, however, possible to secure a better rate through internet banking, while those who are able to deposit an amount each month will also enjoy higher interest rates .
Northern Rock has also unveiled a new tax-free cash ISA, offering a fixed rate of 3 per cent on balances of over £500. The deal is identical to the one being offered by the Post Office, though better rates are available with Kent Reliance, who require a minimum deposit of just £100.
In a further sign that the formerly troubled bank is chasing market share, a new children's account has also been launched called Little Rock. However, the rates offered on the account are only half as good as those on the equivalent product at Halifax, though Northern Rock's limit is eight times higher than that of Halifax.






