Northern Rock reintroduces ISA Saver

Northern Rock has reintroduced its 120-day notice Cash ISA, offering tax-free savings with the flexibility of planned access, coupled with a competitive rate of interest.

ISA Saver is available now and can be operated either by post or in branch with a minimum initial deposit of £1,000.

The new account, pays 2.80% tax-free pa/AER variable, which includes a 1.50% tax-free pa/AER 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 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expiry of the 120-day notice period will be subject to a charge equivalent to 120 days’ loss of interest on the amount withdrawn.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) can be made to ISA Saver, within HM Revenue and Customs limits (£5,340 per tax-year from 6th April 2011). The maximum that can be held in the account is £2m, with transfers in to the cash ISA permitted up to this amount (limited to HMRC limit of £5,340 if transferring current tax-year’s subscriptions).

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% tax-free pa) for the duration of any period the balance of the account falls below £1,000.

For more information, visit northernrock.co.uk.