Northern Rock improves interest rates for Fixed Rate ISA savers

Northern Rock is launching three new issues of its fixed rate cash ISA, offering savers the chance to take advantage of competitive tax-free interest rates before the new tax-year begins on 6 April.

The new accounts, which are fixed over a choice of either one, three or five years, will be available to open from 2pm today (23 March 2011) with a minimum initial deposit of £500.

Strictly limited issues, the fixed rate cash ISAs (issues 159, 160 and 161) 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 products can be opened either by post or through Northern Rock’s branches and additional deposits (£250 minimum) can be made to the cash ISAs, within HM Revenue and Customs limits (£5,100 until 6 April 2011, when the annual limit will increase to £5,340 pa) up to 30 days after the product is withdrawn. After this time, no further deposits will be accepted and all three issues may be withdrawn without notice once fully subscribed.

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of £250 can be made from the account, subject to a charge equivalent to 60 days’ loss of interest on the amount withdrawn (Issue 159), 120 days’ loss of interest on the amount withdrawn (Issue 160), or 180 days’ loss of interest on the amount withdrawn (Issue 161). If balances fall below £500, Northern Rocks basic rate of interest will be paid (0.10%).

For further information, visit northernrock.co.uk.