Northern Rock is passing the full 0.25 per cent increase in European Central Banks rates to its customers tomorrow. The new rate for Direct Savers will be 4.25 per cent gross per annum (4 per cent gross monthly). Customers will be notified of the change by mail.

The account was launched in the Republic, last year and comes with a guarantee that the amount payable is at least 1 per cent above the ECB rate until January 1st, 2001, and matching it until January 1st, 2002.

Within the first two months of operation Northern Rock's Direct Saver has taken in £26 million in deposits. It will launch a business deposit account later this month.