Northern Rock launches new one-year 2.85% cash ISA issue

Following the popularity of Northern Rock’s market-leading Cash ISA Breaker (Issue 2), in July this year, the bank has now launched a new issue of the one-year Fixed Rate Cash ISA, specifically designed for those who want to use their individual tax-free* savings allowance for the first time.

Cash ISA Breaker (Issue 3) is available at a rate of 2.85% tax-free* pa, fixed until 15 October 2011, and is intended to appeal to customers who may be taking their first step on to the savings ladder. It can be opened either by post or through Northern Rock branches, with a minimum initial deposit of £500.

Strictly a limited issue, additional deposits (£250 minimum) can be made to the Cash ISA Breaker, up to the maximum HM Revenue & Customs limit of £5,100 pa (increased from £3,600 pa in April 2010), whilst the issue remains available. After this time, no further deposits will be accepted and the issue may be withdrawn without notice once fully subscribed.

Interest, which can be accumulated to the account or paid into another account, is paid annually on 30 November.

Should the need arise; 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of £250 can be made from the account, subject to a charge equivalent to 60 days’ loss of interest on the amount withdrawn.

As this account is targeted at customers taking their first steps to build savings, ISA Transfers from other ISA providers (including Northern Rock) are not permitted into ISA Breaker.

In keeping with Northern Rock’s commitment to providing openness, transparency, and fair treatment of customers full product details for Northern Rock accounts are available on request in the Terms and Conditions.

*TAX-FREE - The tax-free rate is the contractual rate of interest payable where interest is exempt from income tax.
**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 you are eligible to receive interest gross and submit the required registration form .
***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.

For application forms visit: northernrock.co.uk