Commercial Mortgage Calculator | Northern Rock Reveals Savers Are Losing Out On GBP1 Billion In ISA Interest

April 22, 2011

NEWCASTLE, ENGLAND, April 22, 2011 /24-7PressRelease/ -- Northern Rock has suggested that UK ISA savers are omitted out on around GBP1 billion of fascination any year that they could be earning if they shopped around.

Cash ISAs or Individual Savings Accounts are written to enable consumers elderly 16 and over to take value of tax-free* interest. Northern Rock's investigate in to instant-access ISA products existing in the UK, demonstrates that over 69% of Cash ISA balances consequence fascination at reduction than 1.00% papa - that amounts to GBP60 billion in balances.

The marketplace comprehension on products existing up to January this year has shown that if all the instant-access ISA consumers now earning reduction than 1.00% papa were to switch their tax-free* extra savings to a non-static rate Cash ISA profitable at least 2.65% pa, they would take additional fascination over a year of around GBP1 billion**, before any limited bonuses.

Northern Rock's Easy ISA***, that was launched to acquire in the new taxation year, when the particular tax-free* Cash ISA subscription confine increased to GBP5,340 is to 2011/12 taxation year, pays 2.65% papa variable, and may be operated possibly by post or in branch. Or for those who pick to run their account online, e-ISA*** pays 2.80% papa variable.

Northern Rock's new Cash ISA operation does not have any rudimentary reward rates trustworthy and allows incoming transfers of existing ISA subscriptions from other providers.

Andy Tate, patron and blurb executive at Northern Rock said: "This investigate highlights the aloft earnings ISA savers can consequence if they are ready to emporium around.

"When seeking at where to save is to new ISA year, it is critical that customers moreover ponder whether their formerly years' tax-free* extra savings are in the most appropriate ISAs for their needs and, if not, they can pierce it to a improved account.

"All of Northern Rock's Cash ISAs agree to transfers in from other ISA providers and formerly year's subscriptions. We have moreover written our ISA operation to be as elementary and candid as possible. That means there are no short-term rudimentary bonuses, and customers do not must be have other variety of accounts with us either.

"We hope this investigate will indicate people to the fact that Northern Rock provides a aggressive selection of tax-free options to make their allowance work harder for them, whatever they are saving for."

About Northern Rock:

Northern Rock plc is a sell extra savings and residential mortgage bank, certified by the FSA as a deposition taker and mortgage lender from 1 January 2010. It binds and services around GBP16 billion of extra savings balances and GBP12 billion of mortgage accounts. It offers new extra savings and mortgage products.

The Northern Rock site includes a operation of interactive collection - such as a slang buster, a mortgage calculator and a bill planner - to help take the difficulty out of selecting the correct extra savings product to encounter particular circumstances, and a product calculator for any of Northern Rock's products, inclusive its Cash ISAs, to help work out the estimated lapse on investment.

Notes to Editors:

*The tax-free rate is the contractual rate of fascination on credit where fascination is free from income tax.

** If all the consumers whose ISAs pay reduction than 1.00% papa non-static switched to Northern Rock's Easy ISA at 2.65%, completely they would take a minimum additional fascination income over a year of GBP999 million. This is formed on ISA Instant Access batch and fascination rate information from CACI's Current Account Savings Database taken at 31 January 2010.

Website:

*** Easy ISA situation 2.

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