Northern Rock adds online options to growing cash ISA portfolio
Northern Rock is launching a range of brand new online ISAs to complement its competitive portfolio of branch, postal and online savings accounts.
The new e-ISA account offers those who prefer to operate their accounts via the internet, an online option for their tax-free* savings. e-ISA is available either as an instant access account, or as a fixed rate cash ISA set at a competitive rate of interest over a choice of one, two or three years.
Northern Rock’s Customer and Commercial Director Andy Tate said: “Our customers want options. They want to be able to choose the best account to meet their individual needs, whether that be tax-free or not, and variable or fixed rate.
“They also want to be able to choose the most convenient method by which to operate their account - by telephone, post, in branch or online. Northern Rock is proud to be able to offer fixed and variable rate savings accounts, as well as fixed or variable tax-free options, via every one of the available channels with the launch of our new e-ISA.
“This demonstrates we are committed to listening to our customers and giving them what they want, a bank that works for them.”
Instant access
The e-ISA account provides a variable rate of interest, and easy access to your funds. With no minimum opening deposit, e-ISA (instant access) pays a competitive flat rate of 2.65% tax free*/AER** pa on balances of £1+ (balances falling below £1 will earn Northern Rock’s prevailing rate of interest, 0.10% gross***/AER** pa).
The product welcomes additional deposits and transfers in 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 11 March (available the next business day or within three business days if sent by BACS to another account).
Notice-free withdrawals (minimum £1 by BACS, minimum £250 by CHAPS) can also be made from the account (there is a £35 fee for transfers via CHAPS). Notice-free transfers, which require a signature, can also be made (these may take up to five days to process).
Fixed rate e-ISA (Issues 1, 2 and 3)
For those who prefer to earn a fixed rate of interest on their tax-free* savings, a range of Fixed Rate e-ISAs can be opened with no minimum initial deposit.
Interest, which can be added to the account or paid into another account, is paid annually on 5 August on minimum balances of £500 (balances which fall below this amount will earn Northern Rock’s prevailing rate of interest, 0.10% gross***/AER** pa).
Strictly limited issues, the fixed rate e-ISAs (issues 1, 2 and 3) allow transfers in from other providers and additional deposits 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.
Minimum withdrawals of £1 by BACS and £250 by CHAPS can be made from the account, subject to a charge equivalent to 60 days’ loss of interest on the amount withdrawn (Issue 1), 90 days’ loss of interest on the amount withdrawn (Issue 2), or 120 days’ loss of interest on the amount withdrawn (Issue 3). There is a £35 fee for transfers out via CHAPS.
*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.
***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 to us.
Further information on Fixed Rate e-ISA
• Limited issues – all three issues may be withdrawn at any time. Once withdrawn no further deposits will be accepted after a period of 30 days.
• Available as fixed rate cash ISAs. Max investment of £5,100 in tax-year 2010-11.
• Charge-free transfers will be allowed from all Northern Rock variable rate accounts, instant access and notice accounts (transfers from Northern Rock internet accounts must be via the nominated bank account). Transfers will also be accepted from other organisations. Withdrawal transfers by CHAPS will be subject to a fee of £35.
• Transfers out require a signature and will be subject to five business days processing and a charge equivalent to 60 days’ loss of interest (fixed rate cash e-ISA issue 1), 90 days’ loss of interest (fixed rate cash e-ISA issue 2), or 120 days’ loss of interest (fixed rate cash e-ISA issue 3).
• Withdrawals within the fixed rate period will be subject to the same respective loss of interest charges as detailed above. Minimum withdrawal amount is £250 by CHAPS and £1 by BACS.
• Interest will be paid on 5 August in the case of all three issues, and can be accumulated to the account(s), or paid to either another Northern Rock account (subject to the Terms and Conditions of that account) or that of another bank or building society.
• Available to open and operate via Northern Rock’s website.
• On expiry of the fixed rate, the interest rate payable will be the prevailing variable rate on Northern Rock’s matured cash e-ISA, excluding any introductory bonuses.
• Notice-free access will be available for 30 days from maturity (the account will then be subject to 30 days’ notice or 30 days’ loss of interest on the amount withdrawn).
Visit northernrock.co.uk for further details and an application form.