Northern Rock launches competitive new fixed rate e-ISAs

From: Northern Rock
Published: Mon Mar 07 2011

Northern Rock is launching three new issues of it's of new online ISA to complement its competitive portfolio of branch, postal and online savings accounts.

e-ISA offers those who prefer to operate their accounts via the internet, an online option for their tax-free* savings. e-ISA is a fixed rate cash ISA set at a competitive rate of interest over a choice of one, two or three years.

The new issues of the e-ISA are as follows: a one year account at 3.01% tax-free*/AER** pa fixed until 24 April 2012 (Fixed Rate e-ISA Issue 4); a two year account at 3.50% tax-free*/AER** pa fixed until 24 April 2013 (Fixed Rate e-ISA Issue 5), and a three year option at 4.00% tax-free*/AER** pa fixed until 24 April 2014 (Fixed Rate e-ISA Issue 6).

Northern Rock's Customer and Commercial Director Andy Tate said: "Our customers want options. They want to be able to choose the best account to meet their individual needs, whether that be tax-free or not, and variable or fixed rate.

"They also want to be able to choose the most convenient method by which to operate their account - by post, in branch or online. Northern Rock is proud to be able to offer fixed and variable rate savings accounts, as well as fixed rate tax-free options, via every one of the available channels with our e-ISA range.

"We are pleased to increase our e-ISA rates today, as previous issues have been very well received by our customers and the market as a whole."

For customers who prefer to earn a fixed rate of interest on their tax-free* savings, Fixed Rate e-ISA can be opened with no minimum initial deposit.

Interest, which can be added to the account or paid into another account, is paid annually on 5 August on minimum balances of £500 (balances which fall below this amount will earn Northern Rock's prevailing rate of interest, 0.10% tax free*/AER** pa).

Strictly limited issues, the fixed rate e-ISAs (issues 4, 5 and 6) allow transfers in from other providers and additional deposits 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to the cash ISAs, within HM Revenue and Customs limits (£5,100 pa from April 2010) up to 30 days after the product is withdrawn.

After this time, no further deposits will be accepted and all three issues may be withdrawn without notice once fully subscribed.

Minimum withdrawals of £1 by BACS and £250 by CHAPS can be made from the account, subject to a charge equivalent to 60 days’ loss of interest on the amount withdrawn (Issue 4), 90 days' loss of interest on the amount withdrawn (Issue 5), or 120 days' loss of interest on the amount withdrawn (Issue 6). There is a £35 fee for transfers out via CHAPS.

Notes to Editors:
*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.

About Northern Rock:
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 to customers in the UK and Ireland and mortgages to UK borrowers. The Northern Rock website also offers a mortgages calculator, which allows customers to easily find the mortgage that best suits their needs. 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.

Media Contact:
Jule Wilson
Northern Rock House
Newcastle upon Tyne
0191 279 4676
Company: Northern Rock
Contact Name: Jule Wilson
Contact Email:
Contact Phone: 0191 279 4676

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