Northern Rock says Direct Saver and Direct Saver Business account customers will receive the full European Central Bank rate increase. The 0.25 per cent increase boosts the rate for both accounts to 4.75 per cent gross per annum (4.5 per cent gross monthly) from May 8th.

The Direct Savers variable rate applies to all balances above the minimum opening balance of £1,000 and comes with an independent rate guarantee linked to the ECB rate (now 3.75 per cent) until January 1st, 2001 and will then at least match it until January 1st, 2002. The business account pays the same rate for a minimum balance of £10,000 and carries the same rate guarantee.