Virgin Money launches new 'early bird' ISA service

Released on: February 23, 2012, 12:57 am
Author: Virgin Money
Industry: Financial

Virgin Money has launched a new 'early bird' ISA service for savers. By opening an Early Bird ISA Feeder, customers can use the service to start earning interest on next year’s ISA allowance now - without having to wait for the new tax year to start in April. The Early Bird ISA Feeder offers a competitive interest rate of 3.57% gross**/AER***, or 2.85% net, giving savers the same return as Virgin Money’s current variable cash ISA. The interest rate is fixed until 5 April 2012, following which the funds will automatically transfer into an Early Bird ISA for the new tax year.

The Early Bird ISA is a variable rate instant access cash ISA, paying 2.85%. This attractive headline rate offers good value for customers and it does not include a short term introductory bonus.

Accounts are available to open through Northern Rock branches, by post or by telephone, and savers can invest between £1 and the new 2012/13 cash ISA limit of £5,640.

Anthony Mooney, Mortgage and Savings Director at Virgin Money said: "Our new early bird ISA service means customers can take the hassle out of arranging their ISA for the next tax year by sorting it out early. Savers can earn an attractive interest rate between now and the start of the new tax year in our Early Bird ISA Feeder, safe in the knowledge that their money will automatically transfer into a tax-free ISA account in April."

Interest earned on the Early Bird ISA Feeder will be paid to a nominated account on 5 April 2012, and does not allow any withdrawals or closure until the new tax year. Additional deposits can be made to the Early Bird ISA Feeder until 30 March 2012 up to a maximum of £5,640 per account. Once the funds have transferred into the Early Bird ISA, withdrawals can be made without notice, and additional deposits and transfers in from existing ISA accounts are permitted within HMRC regulations.

The Virgin Early Bird ISA Feeder and Virgin Early Bird ISA are personal deposit accounts with Northern Rock plc. The Financial Services Compensation Scheme (FSCS) provides protection to customers with these accounts under Northern Rock plc's existing FSCS membership up to a maximum of £85,000 per person. The £85,000 limit relates to a customer's combined deposits with Northern Rock plc under the Northern Rock and Virgin Money trading names.

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Notes to Editors:
* Interest on the Virgin Early Bird ISA is subject to deduction of tax in the usual way. The net interest rate following deduction of tax of 2.85% is equivalent to the interest rate payable on the Virgin Easy Access Cash ISA.
**Gross is the rate of interest paid to eligible non-taxpayers without deduction of tax. Please note interest will be paid net of tax unless customers are eligible to receive interest gross and submit the required registration form to Virgin Money.
***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 Virgin Money
Virgin Money announced the acquisition of Northern Rock plc from Her Majesty's Treasury on 17 November 2011. The deal completed on 1 January 2012.

Combined with Virgin Money's existing business of three million customers, the enlarged Group will have over four million customers.

About Northern Rock:
On 1 January 2012, Northern Rock was acquired by Virgin Money.

Northern Rock is a bank, authorised by the FSA as a deposit taker and mortgage lender. It offers savings accounts, including fixed rate bonds, and mortgages to customers in the UK. New products are offered through both direct channels - including a national branch network - and mortgage intermediaries.

PR Contact:
Jule Wilson
Northern Rock House
Gosforth
Newcastle upon Tyne
NE3 4PL
0191 279 4676
www.northernrock.co.uk