Northern Rock increases cash Isa bond ratesIncrease for online savers, but others lose out
29 April 2011
Northern Rock has increased the interest rates on its online fixed-rate cash Isas, boosting its position in the Which? Best rate cash Isa tables.
1-year fixed-rate cash Isa bonds
Northern Rock has two 1-year accounts in the Which? Best Rate cash Isa tables. The online e-Isa Issue 4 now pays an increased rate of 3.20%, while the branch- and post-based Issue 159 pays 3.05%.
3-year fixed-rate cash Isa also increased
Northern Rock has also increased the interest rate on its 3-year cash Isa bond. The online-only e-Isa Issue 9 now pays a table-topping 4.25%. It has a minimum deposit of £500 and a transfer-out penalty of 120 days' loss of interest. Interest is paid yearly.
The postal and branch version, Issue 160, is also a Which? Best Rate cash Isa, but pays a lower rate of 3.75%.
Which? Principal Researcher Martyn Saville commented: 'These increases in the interest rate offered on Northern Rock's online cash Isas are very welcome news for hard-pressed savers trying to keep up with inflation.
'However, it is disappointing that savers without internet access, as well as those who prefer to transact in branch or by post, are once again losing out on the very best deals.'
Get the best cash Isa deal for you
As ever with fixed-rate deals, you should make sure that you can afford to tie up your money for the designated period. If you think there's a chance you'll want to get your hands on the cash you've saved at short notice, you should opt for an instant access cash Isa account instead.
Compare all types of savings accounts by reading the Which? Best Rate cash Isa accounts review.
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