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back to newsroom28/07/2010 Northern Rock launches new fixed rate cash ISA issues
- Tax-free savings over a choice of one, three or five years
- 2.80% pa fixed until 15 August 2011
- 3.50% pa fixed until 15 August 2013
- 4.00% pa fixed until 15 August 2015
Northern Rock is launching three new issues of its fixed rate cash ISA, offering competitive tax-free interest rates, each of which are fixed over a choice of either one, three or five years. The new accounts will be available to open from today (28 July 2010) with a minimum initial deposit of £500.
The limited issue fixed rate cash ISAs (issues 137, 138 and 139) can be opened either by post or through Northern Rock’s branches. Additional deposits (£250 minimum) can be made to the cash ISAs, within HM Revenue and Customs limits (£5,100 pa from April 2010) up to 30 days after the product is withdrawn.
Interest, which can be added to the account or paid into another account, is paid annually on 30 November.
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of £250 can be made from the account, subject to a charge equivalent to 60 days’ loss of interest on the amount withdrawn (Issue 137), 120 days’ loss of interest on the amount withdrawn (Issue 138), or 180 days’ loss of interest on the amount withdrawn (Issue 139).
1 Year Fixed Rate Cash ISA - Issue 137 - Fixed to 15 August 2011
| Amount Invested | Issue 137 | |
|---|---|---|
| % Annual | ||
| Tax-free p.a*. | AER** | |
| £500+ | 2.80% | 2.80% |
3 Year Fixed Rate Cash ISA - Issue 138 - Fixed to 15 August 2013
| Amount Invested | Issue 138 | |
|---|---|---|
| % Annual | ||
| Tax-free p.a*. | AER** | |
| £500+ | 3.50% | 3.50% |
5 Year Fixed Rate Cash ISA - Issue 139 - Fixed to 15 August 2015
| Amount Invested | Issue 139 | |
|---|---|---|
| % Annual | ||
| Tax-free p.a.* | AER** | |
| £500+ | 4.00% | 4.00% |
*The tax-free rate is the contractual rate of interest payable where interest is exempt from income tax.
**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.
Further information
- Limited issues - all three issues may be withdrawn at any time. Once withdrawn no further deposits will be accepted after a period of 30 days.
- Available as fixed rate cash ISAs. Max investment of £5,100 in tax-year 20010-11.
- Charge-free transfers will be allowed from all Northern Rock variable rate accounts, instant access and notice accounts (transfers from Northern Rock internet accounts must be via the nominated bank account). Transfers will also be accepted from other organisations. Transfers by CHAPS will be subject to a fee of £35.
- Transfers out will be subject to five business days processing and a charge equivalent to 60 days’ loss of interest (fixed rate cash ISA issue 137), 120 days’ loss of interest (fixed rate cash ISA issue 138), or 180 days’ loss of interest (fixed rate cash ISA issue 139).
- Withdrawals within the fixed rate period will be subject to the same respective loss of interest charges as detailed above. Minimum withdrawal amount is £250.
- Interest will be paid on 30 November in the case of all three issues, and can be accumulated to the account(s), or paid to either another Northern Rock account (subject to the Terms and Conditions of that account) or that of another bank or building society.
- Available via Northern Rock branches or direct by post.
- On expiry of the fixed rate, the interest rate payable will be the prevailing variable rate on Northern Rock’s 30 Day cash ISA excluding any introductory bonuses.
- Charge-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).
Northern Rock Savings Pledge
Northern Rock’s Savings Pledge continues to ensure that its savers are kept fully informed of any changes to their accounts. Northern Rock writes to its savers every time it changes the interest rate on their account. In addition, if the account is a notice account and rates are to be reduced, the advance notice will be at least the same as the notice period.
For application forms on all products call 0845 631 5151, or visit www.northernrock.co.uk (Calls are charged at your service provider’s prevailing rate and may be monitored and recorded.)