Northern Rock Adds Online Options to its Growing Cash ISA Portfolio

NEWCASTLE UPON TYNE, England, Feb. 21, 2011 /PRNewswire/ -- Northern Rock is launching a range of brand new online ISAs to complement its competitive portfolio of branch, postal and online savings accounts.

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

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 telephone, post, in branch or online. Northern Rock is proud to be able to offer fixed and variable rate savings accounts, as well as fixed or variable tax-free options, via every one of the available channels with the launch of our new e-ISA.

"This demonstrates we are committed to listening to our customers and giving them what they want, a bank that works for them."

The e-ISA account provides a variable rate of interest, and easy access to funds. With no minimum opening deposit, e-ISA (instant access) pays a competitive flat rate of 2.65% tax free*/AER** pa on balances of 1+ pounds Sterling (balances falling below 1 pound will earn Northern Rock's prevailing rate of interest, 0.10% gross***/AER** pa).

The product welcomes additional deposits and transfers in within HM Revenue and Customs limits (5,100 pounds pa from April 2010). Interest, which can be added to the account or paid into another savings account, is paid annually on 11 March (available the next business day or within three business days if sent by BACS to another account).

Notice-free withdrawals (minimum 1 pound by BACS, minimum 250 pounds by CHAPS) can also be made from the account (there is a 35 pound fee for transfers via CHAPS). Notice-free transfers, which require a signature, can also be made (these may take up to five days to process).

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

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.

***GROSS is the rate of interest paid to eligible non-taxpayers without deduction of tax.

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, such as ISA savings, to customers in the UK and Ireland and mortgages to UK borrowers. New products are offered through both direct channels - including a national branch network - and mortgage intermediaries.

SOURCE Northern Rock