The limited issue Fixed Rate Cash ISA (Issue 129) can be opened either by post or through Northern Rock branches. Additional deposits (£250 minimum) can be made to the Cash ISA, within HM Revenue & Customs limits, which increase to £5,100 pa in April 2010, up to 30 days after the product is withdrawn.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 aged 50 or over during the current tax year. 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of £250 can be made from the account, subject to a charge equivalent to 60 days’ loss of interest on the amount withdrawn.
- Limited issue – may be withdrawn at any time.
- Available as a Fixed Rate Cash ISA. Max £3,600 invested 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Transfers out will be subject to five days processing and a charge equivalent to 60 days loss of interest on the amount withdrawn.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 through Northern Rock branches or directly by post.
- On expiry of the fixed rate, the interest rate payable will be the prevailing variable rate of 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30 days from maturity (the account will then be subject to 30 days’ notice or 30 days’ loss of interest on the amount withdrawn).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.
