Northern Rock increases fixed rate cash e-ISA rates

Northern Rock has launched three new online issues of its Fixed Rate Cash ISA to complement its competitive portfolio of web-based 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 cash ISA set at a competitive fixed rate of interest over a choice of one, two or three years, and the latest rates on offer are among the best in the market.

Fixed Rate e-ISA can be opened with no minimum initial deposit and 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 pa /AER).

Strictly limited issues, the fixed rate e-ISAs (issues 13, 14 and 15) allow transfers in from other providers and additional deposits can be made to the cash ISAs, within HM Revenue and Customs limits (£5,340 from 6 April 2011) up to 30 days after the product is withdrawn. After this time, no further deposits will be accepted and all three issues may be withdrawn without notice once fully subscribed.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£250 by CHAPS can be made from the account, subject to a charge equivalent to 60 days’ loss of interest on the amount withdrawn (Issue 13), 90 days’ loss of interest on the amount withdrawn (Issue 14), or 120 days’ loss of interest on the amount withdrawn (Issue 15). There is a £35 fee for transfers out via CHAPS.