NEWCASTLE UPON TYNE, England, September 29, 2011 /PRNewswire/ --
Northern Rock is launching three new issues of its fixed rate cash ISA, offering savers the chance to take advantage of tax-free* interest rates.
The new accounts, which are fixed over one, three and five years, are available now with a minimum initial deposit of £500.
A strictly limited issue, the fixed rate cash ISAs (issue 174-176) allow transfers from other providers and Northern Rock has increased the interest rates it pays for savers who are happy to lock their tax-free* savings away, whether for the short or long term.
The product can be opened either by post or through Northern Rock's branches and additional deposits (£250 minimum) can be made to the cash ISA, within HM Revenue and Customs limits (£5,340 per tax-year). This issue may be withdrawn without notice once fully subscribed.
To ensure funds are accepted they must be received within 30 days from account opening. Any deposits received after 30 days may be returned. This includes any funds transferred in from existing cash ISAs. 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 their full annual allowance(s).
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of £250 can be made from the account, subject to a charge equivalent to 60 days' loss of interest on the amount withdrawn (Issue 174), 120 days' loss of interest on the amount withdrawn (Issue 175) and 180 days' loss of interest on the amount withdrawn (Issue 176). If balances fall below £500, our current basic rate of interest will be paid (0.10% tax-free* pa /AER**).
Notes to Editors:
Tax-free* savings over one, three or five years
2.90% tax-free* pa/AER** fixed until 15 October 2012 (Issue 174)
3.30% tax-free* pa/AER** fixed until 15 October 2014 (Issue 175)
3.60% tax-free* pa/AER** fixed until 15 October 2016 (Issue 176)
*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 and fixed rate bonds 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.
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
+44(0)191 279 4676
SOURCE Northern Rock