Northern Rock ISA

Alan — Thu, 02 Dec 2010 06:18:38 +0000

An ISA (individual savings account) is simply that: a savings account on which you do not have to pay tax on the interest your money earns, currently to £5,100 in one year. Possibly the best rates on the market at present are offered by Northern Rock with three new issues of fixed rate cash ISA’s. The accounts are available now, with a minimum deposit of £500, at fixed rates over a period of one, three or five years.

The fixed rate issues are 150, 151 and 152. Issue 150 offers 3.05% tax-free for one year, fixed to 15 January 2012. Issue 151 offers 3.5% fixed for three years to January 2014, and issue 152 offers 4.10% fixed for five years to January 2016.

New accounts can be opened through the post or through your nearest branch office. If you choose the post, you can download and print an application or fill out the application online, then print and post it with the required deposit to the Head Office. You can also transfer a cash ISA from another provider to Northern Rock.

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Northern Rock removes 100 percent guarantee

Alan — Sat, 29 May 2010 08:45:49 +0000

As of 1700 BST 24 May, the 100 percent guarantee on funds in Northern Rock bank has been removed. Those with accounts at the bank will have their funds guaranteed up to a maximum of £50,000 per person, just like all the other banking institutions in the U.K that are regulated by the FSA.

The guarantee of 100% insurance was brought in by the government as a means of reassuring the public and preventing a run on the bank when Northern Rock collapsed in 2007. It was always intended as a temporary measure, and now that the bank has limited its guarantee some members will probably choose to move their accounts to other places where they may get a better rate of return.

Gary Hoffman, Chief Executive of Northern Rock, said that the 100% guarantee would remain in place after May 24 on accounts with fixed rates, opened while the guarantee was still in place, that have not reached the end of their term – in some cases more than two years. For example, if you opened a five-year fixed rate account in 2008; all funds will still be guaranteed until 2013.

The bank is still under government ownership at present, but it has been decided that Northern Rock is in much better financial shape and the additional guarantee is no longer needed. Mr. Hoffman noted that this is a positive indication and that the bank is now returning to “a level playing field.” Northern Rock will now be offering the same level of protection as all the other banking institutions not backed by the government.

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Personal Finance Stuff » Northern Rock

Northern Rock ISA

Northern Rock removes 100 percent guarantee