Northern Rock Increases Interest Rate for Online Savers

NEWCASTLE UPON TYNE, England, October 14, 2010 - Northern Rock has announced that, from Wednesday 13th October, it will
increase the interest rate on its online easy access savings account, e-saver
(Issue 3).

e-saver (Issue 3) will pay 2.50% gross* per annum for deposits from GBP1
to GBP100,000 (the minimum deposit by cheque is GBP250). The higher interest
rate will be paid to new account applicants and all existing customers. This
further enhances Northern Rock's online savings (
www.northernrock.co.uk/savings/online-accounts/) range following the
successful launch of Issue 1 of its e-bond (
www.northernrock.co.uk/savings/online-accounts/e-bond_issue_1/) in
September, which entered 'Best Buy' tables with a market-leading interest
rate of 3.00% gross*/AER**.

Unlike many of the highest paying online products available in the
current market, e-saver (Issue 3) pays a flat interest rate which does not
include an introductory bonus. Savings account holders can also choose to
have their interest paid either annually, on 11 March (available the
following business day) or on the 10th of each month (the monthly AER** is
also 2.50%).

Should the need arise withdrawals can be made via a nominated bank or
building society account without notice or charge (there is a GBP35 fee for
transfers via CHAPS). The minimum withdrawal is GBP1 for BACS transfers and
GBP250 for withdrawals by CHAPS. Customers are able to view their transaction
history online.

Additional deposits can be made up to the maximum balance of GBP100,000
by electronic transfer from other bank accounts, a transfer from other
Northern Rock (www.northernrock.co.uk/) accounts or by cheque. e-saver
(Issue 3) is strictly a limited issue and will be withdrawn without notice
once fully subscribed. Once withdrawn, no further deposits will be accepted.

Full product details are available on application in the Terms & Conditions.

Notes to Editors:

*Gross is the rate of interest paid to eligible non-taxpayers without
deduction of tax. Please note interest will be paid net of tax unless you are
eligible to receive interest gross and submit the required registration form.

**AER stands for Annual Equivalent Rate and shows what the interest rate
would be when interest is paid and added to the capital balance each year.

About Northern Rock Plc

Northern Rock plc is a new bank, authorised by the FSA as a
deposit taker and mortgage lender from 1 January 2010. It offers savings
accounts (www.northernrock.co.uk/savings/) to customers in the UK and
Ireland and mortgage products to UK borrowers. New products are offered
through both direct channels - including a national branch network - and
mortgage intermediaries.

Northern Rock continues to operate within the compensatory measures
agreed with the EC as part of the State Aid approval announced in October
2009.

Northern Rock plc - Registered in England and Wales (Company No.
6952311).

Registered Office: Northern Rock House, Gosforth, Newcastle upon Tyne,
NE3 4PL.

Authorised and regulated by the Financial Services Authority.

    Media Contact:

    Jule Wilson
    Communications Manager
    Northern Rock House
    Gosforth
    Newcastle upon Tyne
    NE3 4PL
    +44(0)191-279-4676

    www.northernrock.co.uk

Media Contact: Jule Wilson, Communications Manager, Northern Rock House, Gosforth, Newcastle upon Tyne, NE3 4PL, +44(0)191-279-4676