Northern Rock improves fixed rate cash ISA rates

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, will be available to open from today (19 November 2010) with a minimum initial deposit of £500.

3.05% pa fixed until 15 January 2012 (Issue 150)
3.50% pa fixed until 15 January 2014 (Issue 151)
4.10% pa fixed until 15 January 2016 (Issue 152)

Strictly limited issues, the fixed rate cash ISAs (issues 150, 151 and 152) allow transfers from other providers and FRISA 150 tops the market for short-term fixed rate savings. 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to the cash ISAs, within HM Revenue and Customs limits (£5,100 pa from April 2010) up to 30 days after the product is withdrawn. After this time, no further deposits will be accepted and all three issues may be withdrawn without notice once fully subscribed.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of £250 can be made from the account, subject to a charge equivalent to 60 days’ loss of interest on the amount withdrawn (Issue 150), 120 days’ loss of interest on the amount withdrawn (Issue 151), or 180 days’ loss of interest on the amount withdrawn (Issue 152).

For more information, visit northernrock.co.uk.