Northern Rock launches new ISA Saver

Northern Rock has launched a new 120-day notice ISA, offering tax-free savings with the flexibility of planned access, coupled with a market leading rate.

ISA Saver (Issue 1), is available from today (Tuesday, 26 October 2010) and can be opened and operated either by post or in branch with a minimum initial deposit of £1,000.

The new account, pays 2.80% tax-free/AER pa variable, which includes a 1.50% tax-free/AER pa bonus payable for 12 months from account opening. To provide some peace of mind longer term, the rate is also guaranteed to be no less than Bank of England base rate +0.25% until 31st December 2012.

ISA Saver (Issue 1) allows charge-free withdrawals and transfers (minimum withdrawal is £250 unless closing the account) provided that notice of 120-days is given (there is a £35 fee for transfers via CHAPS). Withdrawals made from the account before the expiry of the 120-day notice period will be subject to a charge equivalent to 120 days’ loss of interest on the amount withdrawn.

Additional deposits (£1 minimum) and transfers can be made to the ISA Saver, within HM Revenue and Customs limits (£5,100 pa from April 2010). Interest, which can be added to the account or paid into another account, is paid annually on 30 November (available next business day).

The account has a minimum balance of £1,000 and the interest rate will fall to Northern Rock’s prevailing rate of interest (currently 0.1%) for the duration of any period the balance of the account falls below £1,000.

For further information, visit northernrock.co.uk.