Bank ups interest on net account

British bank Northern Rock will pay savers an extra 0.4% interest on savings lodged to its internet-based demand deposit account.

The introductory bonus will be available for six months and will increase the variable rate to 3.00% gross per annum on balances above €1,000.

Northern Rock sales and marketing director Andy Kuipers said the bank would pay €28 gross on deposits of €1,000. This compared with an industry average of just 68c, he said.