Virgin Money launches new 'early bird' ISA service
- A new service from Virgin Money enables savers to get a head start in planning next year’s ISA
- The Early Bird ISA Feeder net interest rate of 2.85% matches Virgin Money’s cash ISA rate – in effect, giving savers the full tax-free benefit of a cash ISA now, ahead of the new tax year
- Deposits in the Early Bird ISA Feeder will automatically transfer into an Early Bird ISA on 6 April 2012
Virgin Money has launched a new ‘early bird’ ISA service for savers. By opening an Early Bird ISA Feeder, customers can use the service to start earning interest on next year’s ISA allowance now – without having to wait for the new tax year to start in April. The Early Bird ISA Feeder offers a competitive interest rate of 3.57% gross*/AER**, or 2.85% net, giving savers the same return as Virgin Money’s current variable cash ISA. The interest rate is fixed until 5 April 2012, following which the funds will automatically transfer into an Early Bird ISA for the new tax year.
The Early Bird ISA is a variable rate instant access cash ISA, paying 2.85%. This attractive headline rate offers good value for customers and it does not include a short term introductory bonus.
Accounts are available to open through Northern Rock branches, by post or by telephone from today, Tuesday 21 February, and savers can invest between £1 and the new 2012/13 cash ISA limit of £5,640.
Anthony Mooney, Mortgage and Savings Director at Virgin Money said “Our new early bird ISA service means customers can take the hassle out of arranging their ISA for the next tax year by sorting it out early. Savers can earn an attractive interest rate between now and the start of the new tax year in our Early Bird ISA Feeder, safe in the knowledge that their money will automatically transfer into a tax-free ISA account in April.”
Interest earned on the Early Bird ISA Feeder will be paid to a nominated account on 5 April 2012, and does not allow any withdrawals or closure until the new tax year. Additional deposits can be made to the Early Bird ISA Feeder until 30 March 2012 up to a maximum of £5,640 per account. Once the funds have transferred into the Early Bird ISA, withdrawals can be made without notice, and additional deposits and transfers in from existing ISA accounts are permitted within HMRC regulations.
The Virgin Early Bird ISA Feeder and Virgin Early Bird ISA are personal deposit accounts with Northern Rock plc. The Financial Services Compensation Scheme (FSCS) provides protection to customers with these accounts under Northern Rock plc's existing FSCS membership up to a maximum of £85,000 per person. The £85,000 limit relates to a customer's combined deposits with Northern Rock plc under the Northern Rock and Virgin Money trading names.
Full product details are available at www.northernrock.co.uk/savings.
Tel: 0191 279 4676 / 01603 215 909
Northern Rock plc Registered in England and Wales under company number 6952311.
Registered Office: Northern Rock House, Gosforth, Newcastle upon Tyne NE3 4PL (Main Switchboard 0845 600 8401). Authorised and regulated by the Financial Services Authority.
|Product||Maturity date||Annual gross*/AER**||Net|
|Virgin Early Bird ISA Feeder||5 April 2012||3.57%||2.85%|
|Virgin Early Bird ISA||n/a||2.85%||n/a|
*Gross is the rate of interest paid to eligible non-taxpayers without deduction of tax. Please note interest will be paid net of tax unless you are eligible to receive interest gross and submit the required registration form to us.
**AER stands for Annual Equivalent Rate and shows what the interest rate would be when interest is paid and added to the capital balance each year.
1. Interest on the Virgin Early Bird ISA is subject to deduction of tax in the usual way. The net interest rate following deduction of tax of 2.85% is equivalent to the interest rate payable on the Virgin Easy Access Cash ISA.