Northern Rock launches new fixed rate e-ISAs
Released on: August 19, 2011, 4:11 pm
Northern Rock has launched three new online issues of its
fixed rate cash e-ISA to complement its competitive portfolio of
internet-based 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 cash ISA set at a competitive fixed
rate of interest over a choice of one, two or three years and 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 the first business day following 5th 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* pa /AER**).
Strictly limited issues, the fixed rate cash e-ISAs (issues 19, 20 and 21) allow
transfers in from other providers and additional deposits can be made to the cash
ISAs, within HM Revenue and Customs limits (£5,340 per tax-year from 6 April 2011)
up to 30 days after the product is withdrawn (excepting postal applications to
transfer in from other banks and building society ISA accounts, which must be
received while the product remains on sale).
To guarantee funds are accepted into a new account, Northern Rock advises all funds
to be deposited within 30 days from the account opening date. Any deposits received
after 30 days may be returned to customers. This includes any funds transferred in
from an existing cash ISA, therefore
customers should ensure that they initiate any Cash ISA transfers in as soon as they
receive their new Cash ISA details. Subscriptions are not allowed to any other Cash
ISAs in the same tax year(s) that customers subscribe to this Cash ISA, even if they
have not used your full annual allowances(s).
30 days following the products withdrawal, 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all three issues may be withdrawn without notice once fully subscribed.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subject to a charge equivalent to 60 days' loss of interest on the amount withdrawn
(Issue 19), 90 days' loss of interest on the amount withdrawn (Issue 20), or 120
days’ loss of interest on the amount withdrawn (Issue 21). There is a £35 fee for
transfers out via CHAPS.
- ENDS -
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.
Online cash ISA rates are as follows:
3.20% tax-free* pa /AER** fixed until 24 September 2012 (Fixed Rate e-ISA Issue 19)
3.55% tax-free* pa /AER** fixed until 24 September 2013 (Fixed Rate e-ISA Issue 20)
3.80% tax-free* pa /AER** fixed until 24 September 2014 (Fixed Rate e-ISA Issue 21)
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
(including fixed rate bonds) and mortgages to UK borrowers. 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.
In June 2011, Northern Rock was awarded a national Big Tick Award in Business in the
Community’s Awards for Excellence, in the category of Building Stronger Communities.
Northern Rock House
Newcastle upon Tyne
0191 279 4676
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