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Rock boosts ISA rate

Rock boosts ISA rate

Category: Savings

Updated: 29/01/2010
First Published: 25/01/2010

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.
Northern Rock has delivered a boost to savers looking for a long term vehicle for their ISA by increasing the rate paid on its five year tiered product.

The Stepped Fixed Rate ISA Issue 4 is a fixed term branch and postal operated cash ISA, maturing on 15.3.15 with rates guaranteed to rise each year.

A minimum investment of £500 pays 3.50% yearly until 15.3.11, 4.00% until 15.3.12, 4.50% until 15.3.13, 5.00% until 15.3.14, and then 5.50% until maturity.

Earlier access and transfers out are permitted on 180 days' loss of interest. The minimum withdrawal is £250. Additions (minimum £250) are permitted until 30 days after the issue becomes closed. Transfers in are permitted.

The slight rate increases takes the product into one of the market leading positions, albeit in a limited marketplace.

This is a flexible product although hefty penalties can be incurred, so savers must insure they can afford the required investments if they are to benefit from the headline rates.

This ISA has been awarded four out of five Moneyfacts stars.

Find the best savings accounts for you - Compare fixed rate cash ISAs

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.