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23/11/2009Northern Rock Launches New Stepped Fixed Rate Cash ISAs

Please Note: This article pre-dates the company restructure of 01 January 2010

• Choose from a three year or a five year Stepped Fixed Rate Cash ISA
• Fixed rates of interest which increase year on year
• 3.75% tax-free pa fixed in Year 1
• 4.00% tax-free pa fixed in Year 2
• 4.50% tax-free pa fixed in Year 3
• 4.75% tax-free pa fixed in Year 4
• 5.00% tax-free pa fixed in Year 5

Northern Rock is launching a new range of Stepped Fixed Rate Cash ISAs, offering competitive and increasing tax-free interest rates, each of which are fixed for a 12 month period over a choice of either three, or five years. The new accounts will be available to open from today (Monday 23 November 2009) with a minimum initial deposit of £500.

The limited issue Stepped Fixed Rate Cash ISA (Issues 1 and 2) can be opened either by post or through Northern Rock branches. Additional deposits (£250 minimum) can be made in to the Cash ISAs, within HM Revenue & Customs limits, which increase to £5,100 pa in April 2010, up to 30 days after the product is withdrawn. This increase in subscription limit came into effect on 6 October, for customers 50 or over during the current tax year.

Customers can choose from a maturity date of 15 December 2012 or 15 December 2014, and interest, which can be accumulated to the account or paid into another account is paid annually on 30 November.

Should the need arise, minimum withdrawals of £250 can be made from the account, subject to a charge equivalent to 120 days’ or 180 days’ loss of interest on the amount withdrawn, from Issue 1 and Issue 2 respectively.

• For application forms call 0845 631 5151

Stepped Fixed Rate Cash ISA - Issue 1 - Fixed to 15 December 2012

Stepped Fixed Rate Cash ISA - Issue 2 - Fixed to 15 December 2014

• Limited issues - may be withdrawn at any time.
• Available as a Stepped Fixed Rate Cash ISA. Max investment of £3,600 in tax-year 2009-10 (unless aged 50 in the current tax year) increasing to £5,100 in each subsequent tax-year.
• 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.
• Transfers out will be subject to five days processing and a charge equivalent to 120 days’ loss of interest (Issue 1) or 180 days’ loss if interest (Issue 2) on the amount withdrawn.
• Withdrawals within the fixed rate period will be subject to the same loss of interest charges. Minimum withdrawal amount is £250.
• Interest will be paid annually (30 November) and can be accumulated to the account, or paid to either another Northern Rock account or that of another bank or building society.
• Available via Northern Rock branches or direct by post.
• On expiry of the fixed rate, the interest rate payable will be the prevailing variable rate on Northern Rock’s 30 Day Cash ISA.
• Charge-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).

Northern Rock Savings Pledge
Northern Rock’s Savings Pledge continues to ensure that its savers are kept fully informed of any changes to their accounts. Northern Rock writes to its savers every time it changes the interest rate on their account. In addition, if the account is a notice account and rates are to be reduced, the advance notice will be at least the same as the notice period.

MORE SAVINGS NEWS AND OTHER PRODUCT INFORMATION ON NORTHERN ROCK’S
WEBSITE:
www.northernrock.co.uk