Northern Rock maintains great rates on ISAs

Northern Rock is launching three new issues of its fixed rate cash ISA, offering competitive tax-free interest rates coupled with low access charges. The new accounts, which are fixed over a choice of either one, three or five years, are available to open now with a minimum initial deposit of £500.

Strictly limited issues, the fixed rate cash ISAs (issues 147, 148 and 149) can be opened either by post or through Northern Rock’s branches. Additional deposits (£250 minimum) can be made to the cash ISAs, within HM Revenue and Customs limits (£5,100 pa from April 2010) up to 30 days after the product is withdrawn. After this time, no further deposits will be accepted and all three issues may be withdrawn without notice once fully subscribed.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of £250 can be made from the account, subject to a charge equivalent to 60 days’ loss of interest on the amount withdrawn (Issue 147), 120 days’ loss of interest on the amount withdrawn (Issue 148), or 180 days’ loss of interest on the amount withdrawn (Issue 149).

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.

For further information and application forms, visit northernrock.co.uk.