Northern Rock Reveals Savers are Losing Out on GBP1 Billion in ISA Interest
Northern Rock has revealed that savers are missing out on around GBP1 billion in ISA interest.

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

Cash ISAs or Individual Savings Accounts are designed to allow consumers aged 16 and over to take advantage of tax-free* interest. Northern Rock's research into instant-access ISA products available in the UK, demonstrates that over 69% of Cash ISA balances earn interest at less than 1.00% pa - which amounts to GBP60 billion in balances.

The market intelligence on products available up to January this year has shown that if all the instant-access ISA consumers currently earning less than 1.00% pa were to switch their tax-free* savings to a variable rate Cash ISA paying at least 2.65% pa, they would receive additional interest over a year of around GBP1 billion**, before any conditional bonuses.

Northern Rock's Easy ISA***, which was launched to welcome in the new tax year, when the individual tax-free* Cash ISA subscription limit increased to GBP5,340 for the 2011/12 tax year, pays 2.65% pa variable, and can be operated either by post or in branch. Or for those who prefer to operate their account online, e-ISA*** pays 2.80% pa variable.

Northern Rock's new Cash ISA range does not have any introductory bonus rates attached and allows incoming transfers of existing ISA subscriptions from other providers.

Andy Tate, customer and commercial director at Northern Rock said: "This research highlights the higher returns ISA savers can earn if they are prepared to shop around.

"When looking at where to save for the new ISA year, it is important that customers also consider whether their previous years' tax-free* savings are in the best ISAs for their needs and, if not, they can move it to a better account.

"All of Northern Rock's Cash ISAs accept transfers in from other ISA providers and previous year's subscriptions. We have also designed our ISA range to be as simple and straightforward as possible. That means there are no short-term introductory bonuses, and customers don't need to have other types of accounts with us either.

"We hope this research will point people to the fact that Northern Rock provides a competitive choice of tax-free options to make their money work harder for them, whatever they are saving for."

Press Release Contact Information:

Jule Wilson
Northern Rock
PR Contact
Northern Rock House
Gosforth, Newcastle upon Tyne
United Kingdom NE3 4PL
Voice: 0191 279 4676
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