Northern Rock launches competitive fixed rate e-ISAs

Northern Rock is launching three new issues of its new online Cash ISA’s to complement its competitive portfolio of branch, postal and online savings accounts.

e-ISA offers those who prefer to operate their accounts via the internet, an online option for their tax-free savings. e-ISA is 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 post, in branch or online. Northern Rock is proud to be able to offer fixed and variable rate savings accounts, as well as fixed rate tax-free options, via every one of the available channels with our e-ISA range.

“We are pleased to increase our e-ISA rates today, as previous issues have been very well received by our customers and the market as a whole.”
Fixed rate e-ISA (Issues 7, 8 and 9)

For customers who prefer to earn a fixed rate of interest on their tax-free savings, Fixed Rate e-ISA 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 the first business day following 5 August on minimum balances of £500 (balances which fall below this amount will earn Northern Rock’s prevailing rate of interest, 0.10% tax free/AER pa).

Strictly limited issues, the fixed rate e-ISAs (issues 7, 8 and 9) allow transfers in from other providers and additional deposits can be made to the cash ISAs, within HM Revenue and Customs limits (£5,340 pa from 6 April 2011) up to 30 days after the product is withdrawn.

After this time, no further deposits will be accepted and all three issues may be withdrawn without notice once fully subscribed.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£250 by CHAPS can be made from the account, subject to a charge equivalent to 60 days’ loss of interest on the amount withdrawn (Issue 7), 90 days’ loss of interest on the amount withdrawn (Issue 8), or 120 days’ loss of interest on the amount withdrawn (Issue 9). There is a £35 fee for transfers out via CHAPS.

For more informaton, visit northernrock.co.uk.