newsroom
back to newsroom05/07/2010 Northern Rock launches new one-year 3% cash ISA
- Cash ISA Breaker offers 3.00% gross p.a. fixed to 15 July 2011
- Minimum withdrawal of £250 subject to 60 days’ loss of interest
Northern Rock’s new Fixed Rate Cash ISA launched this week (July 5) is designed specifically for those who may be taking their first step onto the savings ladder and want to use their tax-free individual savings allowance.
ISA Breaker (Issue 2) is available at a rate of 3.00% tax-free**** p.a., fixed until 15 July 2011. It can be opened either by post or through Northern Rock branches, with a minimum initial deposit of £500.
Additional deposits (£250 minimum) can be made to the Cash ISA, within HM Revenue & Customs limits, which increased to £5,100 p.a. on 6 April 2010, whilst the Issue is still available.
Interest, which can be accumulated to the account or paid into another account, is paid annually on 30 November.
Should the need arise; minimum withdrawals of £250 can be made from the account, subject to a charge equivalent to 60 days’ loss of interest on the amount withdrawn.
As this account is targeted at customers taking their first steps to build savings, ISA Transfers from other ISA providers (including Northern Rock) are not permitted into ISA Breaker.
In keeping with Northern Rock’s commitment to providing openness, transparency, and fair treatment of customers full product details for Northern Rock accounts are available on request in the Terms and Conditions.
Further information
ISA Breaker - Issue 2
- The account is a limited issue - it may be withdrawn at any time. Once the issue is withdrawn no further deposits will be accepted.
- Available as a Capped Fixed Rate Cash ISA. Max £5,100 invested in tax-year 2010-11.
- Charge-free transfers will be allowed from all Northern Rock variable rate accounts, instant access and notice accounts (transfers from Northern Rock online accounts must be via the nominated bank account). ‘ISA Transfers’ into the account will not be accepted from any provider, including from existing Northern Rock ISAs.
- Withdrawals will be subject to five business days’ processing and a charge equivalent to 60 days’ loss of interest on the amount withdrawn.
- Withdrawals within the fixed rate period will be subject to a charge equivalent to 60 days’ loss of interest on the amount withdrawn. The minimum withdrawal amount is £250.
- Interest will be paid annually (30 November) and can be added to the account, or paid to either another Northern Rock account or that of another bank or building society
- Available through Northern Rock branches or directly by post.
- On expiry of the fixed rate, the interest rate payable will be the prevailing variable rate of Northern Rock’s 30 Day Cash ISA./li>
- Notice-free access will be available for 30 days from maturity (the account will then be subject to 30 days’ notice or 30 days’ loss of interest on the amount withdrawn).
ISA Breaker - Issue 2
| Amount Invested | Issue 2 | |
|---|---|---|
| % Annual | ||
| Tax-free p.a*. | AER** | |
| £500 - £5,100 | 3.00% | 3.00% |
**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.
****TAX-FREE - The tax-free rate is the contractual rate of interest payable where interest is exempt from income tax.
For application forms call 0845 631 5151 or visit www.northernrock.co.uk (Lines are open 8am to 8pm business days, 8am to 4pm Saturday and 10am to 3pm Sunday. Calls are charged at your service provider’s prevailing rate and may be monitored and recorded)
Media Contacts
Jule Wilson
Nigel Charlesworth
Tel: 0191 279 4676
E-mail: press.office@northernrock.co.uk
Notes to Editors
Northern Rock plc is a new bank, authorised by the FSA as a deposit taker and mortgage lender from 1 January 2010. It holds and services around £19 billion of savings balances and £10 billion of mortgage accounts. It offers new savings and mortgage products.
Northern Rock continues to operate within the compensatory measures agreed with the EC as part of the State Aid approval announced in October 2009.
Important Notice
Northern Rock plc Registered in England and Wales under company number 6952311. Registered Office: Northern Rock House, Gosforth, Newcastle upon Tyne, NE3 4PL. Authorised and regulated by the Financial Services Authority.