Northern Rock maintains healthy interest rate for Cash ISA savers

Northern Rock is launching three new issues of its fixed rate cash ISA, offering savers the chance to take advantage of tax-free interest rates.

The new accounts, which are fixed over one, three and five years, will be available to open from 2pm today (24 August 2011) with a minimum initial deposit of £500.

A strictly limited issue, the fixed rate cash ISAs (issue 171-173) allow transfers from other providers and Northern Rock has increased the interest rates it pays for savers who are happy to lock their tax-free* savings away, whether for the short or long term.

The product can be opened either by post or through Northern Rock’s branches and additional deposits (£250 minimum) can be made to the cash ISA, within HM Revenue and Customs limits (£5,340 per tax-year). This issue may be withdrawn without notice once fully subscribed.

To ensure funds are accepted they must be received within 30 days from account opening. Any deposits received after 30 days may be returned. This includes any funds transferred in from existing cash ISAs.

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of £250 can be made from the account, subject to a charge equivalent to 60 days’ loss of interest on the amount withdrawn (Issue 171), 120 days’ loss of interest on the amount withdrawn (Issue 172) and 180 days’ loss of interest on the amount withdrawn (Issue 173). If balances fall below £500, our current basic rate of interest will be paid (0.10% tax-free pa /AER).

For more information, visit northernrock.co.uk.