Interest rates

Interest rates are fixed. Rates effective from 16th March 2010.

Key features 

• Allows you to invest your savings for a fixed term at an interest rate that won't change.
• Interest is tax-free and is paid with no tax deducted as long as your account qualifies as an ISA. 
• Minimum investment during the 2009/2010 tax year is £3,600 (up to £5,100 for anyone aged 50 or over). Minimum investment during the 2010/2011 tax year is £5,100.
• Our 1 Year Fixed Rate ISA (Issue 2) accepts transfers in from existing cash ISAs held with other providers.
• Your opening deposit can be made up of: i) your full current year's cash ISA subscription and/or ii) a transfer of all or part of any previous years’ cash ISA savings 
• Once opened, you cannot add to your account.
• You may take cleared funds from your account at any time, but you will need to pay an interest penalty equivalent to 60 days' interest on the amount withdrawn or give 60 days' notice.
• Interest is calculated daily and paid annually on 31st December and on the maturity date.
• Your 1 Year Fixed Rate ISA (Issue 2) will mature one year after the date of opening. Upon maturity the ISA balance including any accrued interest will transfer to an Instant Access Cash ISA which pays variable interest rates
• This is a limited issue - the ISA will be withdrawn when fully subscribed 
• We provide you with a passbook to help you keep track of your savings and interest.
• This account does not meet the Government's Stakeholder standards

The Tax-free rate is the contractual rate of interest payable where interest is exempt from income tax.

The Annual Equivalent Rate (AER) is a notional rate which illustrates what the gross interest rate would be if interest was paid and added to the account annually.

Cash Individual Savings Accounts (ISAs) pay interest tax-free provided all terms and conditions of the account are met.

Tax assumptions are based on current legislation which may change in the future. Tax treatment or the rate of interest payable depends on your individual circumstances and may be subject to change in the future.