Virgin Money launches two new savings products

Mon, 06 Feb 2012 15:05:20 GMT

Virgin Money has announced the addition of two new accounts to its growing range of savings products. The new Virgin Fixed Rate Bond and Virgin Fixed Rate Cash ISA both offer competitive rates and the accounts are available in Northern Rock branches, online, by post and over the telephone. Interest rates are the same through all distribution channels and ISA customers receive the same great rates as those with a non-ISA account.

The Virgin Fixed Rate Bond offers customers a fixed rate of 3.00% for one year (issue 1) and 3.30% for three years (issue 2). It is a simple, straightforward, fixed rate savings account, available through Northern Rock branches, online or by post. Customers choosing to receive their interest monthly receive the same AER as those receiving annual interest.

The Virgin Fixed Rate Cash ISA offers customers a rate of 3.00% for one year (issue 1) and 3.30% for three years (issue 2) respectively. This matches the rate available for a non-ISA savings account and savers also benefit from the tax-efficiency of the ISA wrapper. These accounts are also available across all Northern Rock channels, and allow transfers in from existing ISAs. Customers can withdraw subject to a charge equivalent to 60 and 120 days loss of interest respectively.

These Virgin Money branded accounts 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 brand or Virgin Money brand names.

Pete Wood, Head of Savings Products said: "We saw a great response from customers to the first Virgin Money savings accounts we launched in January. Following this I am delighted to announce the addition of a new fixed rate bond and a fixed rate cash ISA account to our range. These products are designed to be simple, fair and transparent."

More information on the savings range is available at www.northernrock.co.uk/savings.

- ENDS -

About Virgin Money:
Virgin Money announced the acquisition of Northern Rock plc from Her Majesty's Treasury on 17 November 2011. The deal completed on 1 January 2012. The acquisition included:
- 75 Northern Rock branches
- One million customers
- c.£14bn mortgage book
- c.£16bn retail deposit book
- c.2,100 employees

Combined with Virgin Money's existing business of three million customers, the enlarged Group has over four million customers. The combined business operates under the Virgin Money brand.

Virgin Money's business ambition is to make "everyone better off" - this philosophy underpins its approach to business by offering good value to customers, treating employees well, making a positive contribution to society and delivering a profit to shareholders.

About Northern Rock plc:
Northern Rock is a bank, authorised by the FSA as a deposit taker and mortgage lender. It offers savings accounts and mortgage products to customers in the UK, with a mortgage calculator available on the Northern Rock site. New products are offered through both direct channels - including a national branch network - and mortgage intermediaries.

Northern Rock launches competitive new Fixed Rate Cash e-ISAs

Mon, 31 Oct 2011 12:20:57 GMT

Northern Rock has launched three new online issues of its Fixed Rate Cash e-ISA to complement its competitive portfolio of internet-based savings accounts.

The e-ISA offers those who prefer to operate their accounts via the internet an online option for their tax-free savings. The e-ISA is a cash ISA set at a competitive fixed rate of interest over a choice of one, two or three years and can be opened with no minimum initial deposit.

Interest, which can be added to the account or paid into another account, is paid annually on the first business day following 5 August on minimum balances of £500 (balances which fall below this amount will earn Northern Rock's prevailing rate of interest, 0.10% tax free pa /AER).

Strictly limited issues, the Fixed Rate Cash e-ISAs (issues 25, 26 and 27) allow transfers in from other providers and additional deposits can be made to the cash ISAs, within HM Revenue and Customs limits (£5,340 per tax-year from 6 April 2011) within 30 days after the product is withdrawn (excepting postal applications to transfer in from other banks and building society ISA accounts, which must be received while the product remains on sale).

To ensure funds are accepted into new accounts, Northern Rock must receive all funds within 30 days from the account opening date. Therefore, individuals must initiate any Cash ISA transfers in as soon as they receive their new Cash ISA details. After the 30 day period one may not be able to make any additional deposits into the Cash ISA. Subscriptions are not allowed to any other Cash ISAs in the same tax year(s) that one subscribes to this Cash ISA, even if the full annual allowance(s) haven't been used.

Thirty days following the products withdrawal, no further deposits will be accepted and all three issues may be withdrawn without notice, once fully subscribed.

Minimum withdrawals of £1 by BACS and £250 by CHAPS can be made, subject to a charge equivalent to 60 days' loss of interest on the amount withdrawn (Issue 25), 90 days' loss of interest on the amount withdrawn (Issue 26), or 120 days' loss of interest on the amount withdrawn (Issue 27). There is a £35 fee for transfers out via CHAPS.

Notes to Editors:
Three new online Cash ISA accounts at competitive rates fixed over a choice of one, two or three years:
- 3.35% tax-free* pa /AER** fixed until 24 November 2012 (Fixed Rate e-ISA Issue 25)
- 3.75% tax-free* pa /AER** fixed until 24 November 2013 (Fixed Rate e-ISA Issue 26)
- 4.00% tax-free* pa /AER** fixed until 24 November 2014 (Fixed Rate e-ISA Issue 27)

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

About Northern Rock:
Northern Rock plc is a bank, authorised by the FSA as a deposit taker and mortgage lender from 1 January 2010. It offers savings accounts to customers in the UK and Ireland and mortgages to UK borrowers. New products are offered through both direct channels - including a national branch network - and mortgage intermediaries.

In addition to e-ISAs, Northern Rock offers several other online services, including a budget planner, a jargon buster, a first-time buyer guide and a mortgages calculator.

Northern Rock continues to operate within the compensatory measures agreed with the EC as part of the State Aid approval announced in October 2009.

In June 2011, Northern Rock was awarded a national Big Tick Award in Business in the Community's Awards for Excellence, in the category of Building Stronger Communities.

Northern Rock reveals savers are losing out on £1 billion in ISA interest

Tue, 19 Apr 2011 16:05:08 GMT

Northern Rock has revealed that UK ISA savers are missing out on around £1 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 £60 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 £1 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 £5,340 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."

About Northern Rock:
Northern Rock plc is a retail savings and residential mortgage bank, authorised by the FSA as a deposit taker and mortgage lender from 1 January 2010. It holds and services around £16 billion of savings balances and £12 billion of mortgage accounts. It offers new savings and mortgage products.

The Northern Rock site includes a range of interactive tools - such as a jargon buster, a mortgage calculator and a budget planner - to help take the complexity out of selecting the right savings product to meet individual circumstances, and a product calculator for each of Northern Rock's products, including its Cash ISAs, to help work out the estimated return on investment.

Notes to Editors:
*The tax-free rate is the contractual rate of interest payable where interest is exempt from income tax.

** If all the consumers whose ISAs pay less than 1.00% pa variable switched to Northern Rock's Easy ISA at 2.65%, altogether they would receive a minimum additional interest income over a year of £999 million. This is based on ISA Instant Access stock and interest rate data from CACI's Current Account & Savings Database taken at 31 January 2010.

*** Easy ISA issue 2.

Northern Rock adds ISA video guide to new savings website

Tue, 12 Apr 2011 14:24:18 GMT

Northern Rock has enhanced its interactive new savings website with an animated video guide to help savers steer their way through the ISA maze.

To coincide with the beginning of the new tax year, when the individual tax-free* Cash ISA subscription limit increased to £5,340 for this tax year, Northern Rock has now added the informative four minute guide to its recently revamped savings and investment website.

The guide is designed to help customers make the most of their money in an accessible way, by highlighting the benefits of tax-free* savings accounts and telling them exactly how a Northern Rock Cash ISA works.

The colourful cash ISA video guide, which is also available via the bank's YouTube channel, covers key questions such as 'What is an ISA?', 'How does a cash ISA work?' and, 'Are you able to transfer your existing ISA?'.

Northern Rock offers a range of Cash ISAs, all with competitive rates, including online products such as E-ISAs and Fixed Rate accounts as well as instant-access and variable rate products. All Northern Rock ISA products allow transfers in from other ISA providers and none of Northern Rock's Cash ISAs have any bonus rates attached.

Andy Tate, customer and commercial director at Northern Rock said: "This video guide adds a new dimension to what is already a highly interactive tool.

"The savings website was developed with the aim of improving the process of evaluating and applying for a savings product for our customers, and this new guide enhances this further by getting important and sometimes complex information across about ISAs in a straightforward and enjoyable way.

"We know that our customers prefer catch-free ISA products to those with short term bonuses, as it saves them having to move their funds at the end of a given period. So we've designed our ISA range to be as simple and straightforward as possible.

"Our research has shown that four in ten people who have an ISA earn less than 1% interest, and one in ten people earn less than 0.1%, so we also hope this guide 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."

Further detail about Northern Rock's range of ISA products is available on the new website, which is populated with useful advice and information for different savings customer groups, financial planning information and at-a-glance guides to help people choose between different types of savings account.

The site also includes a range of interactive tools such as a jargon buster and budget planner to help take the complexity out of selecting the right savings product for the customer's own individual circumstances, and a product calculator for each of Northern Rock's products, including its Cash ISAs, to help work out the estimated return on investment.

Notes to Editors:
*The tax-free rate is the contractual rate of interest payable where interest is exempt from income tax.

About Northern Rock:
Northern Rock plc is a retail savings and residential mortgages bank, authorised by the FSA as a deposit taker and mortgage lender from 1 January 2010. It holds and services around £16 billion of savings balances and £12 billion of mortgage accounts. It offers new savings and mortgage products.

Northern Rock launches improved e-ISA Issue 2

Fri, 08 Apr 2011 12:22:08 GMT

Northern Rock has launched a new issue of its online variable rate ISA to complement its competitive portfolio of branch, postal and online savings accounts.

e-ISA Issue 2 offers those who prefer to operate their savings accounts via the internet, an online option for their tax-free* savings. e-ISA is a variable rate Cash ISA set at a competitive rate of interest.

Northern Rock's customer and commercial director Andy Tate said: "Our customers want options. They want to be able to choose the best account to meet their individual needs, whether that be tax-free or not, and variable or fixed rate.

"We are pleased to increase our ISA rates, as the previous issue was well received by our customers and the market as a whole."

For customers who prefer to earn a variable rate of interest on their tax-free* savings, variable rate e-ISA Issue 2 can be opened with no initial deposit.

Interest, which can be added to the account or paid into another account, is paid annually on the first business day following the 11 March and available the next business day on minimum balances of £1.00 (balances which fall below this amount will earn Northern Rock's prevailing rate of interest, 0.10% tax free*/AER** pa).

e-ISA Issue 2 allow transfers in from other providers and additional deposits can be made to the Cash ISA, within HM Revenue and Customs limits (£5,340 pa from 6 April 2011) up to 30 days after the product is withdrawn.

Minimum withdrawals of £1 by BACS and £250 by CHAPS can be made from the account. There is a £35 fee for transfers out via CHAPS.

About Northern Rock:
Northern Rock plc is a new bank, authorised by the FSA as a deposit taker and mortgage lender from 1 January 2010. It offers savings accounts to customers in the UK and Ireland and mortgage products to UK borrowers. New products are offered through both direct channels - including a national branch network - and mortgage intermediaries.

Northern Rock continues to operate within the compensatory measures agreed with the EC as part of the State Aid approval announced in October 2009.

Notes to Editors:
*The tax-free rate is the contractual rate of interest payable where interest is exempt from income tax.

**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.

Confused.com reveals that 14% don't know what an ISA is

Wed, 30 Mar 2011 14:32:58 GMT

Confused.com, the price comparison site, has revealed that 43% of Brit's have never had an Individual Savings Account (ISA) and that 14% didn't know what an ISA was.

The research revealed that 7% of people though it was text speak from "I'm so awesome", 5% thought it was a new Australian boy-band and 2% thought it was an isotonic sports drink.

When asked how much could be saved into a cash ISA, only one in two respondents correctly knew that the current cash limit was £5,100 per year, with 6% saying there was no limit and 11% believing they could add £500 every month. 5% knew the total ISA limit (cash and equity) was £10,200 but thought your salary had to exceed £30,000 a year to qualify. 27% admitted they didn't have a clue.

Research also revealed that only 51% of savers have used this year's ISA entitlement. Given that 22% of respondents said their main savings goal was retirement and a further one in five (20%) said they were saving towards a deposit for a house, Confused.com voiced it's concerns that so few were making use of their tax free allowance to help them achieve these long term goals.

Head of savings at Confused.com, Chris Griffiths, said: "It's worrying that 14% of Brit's don't know what an ISA is given that they've been around for more than a decade. It's even more of a concern that two fifths of people have never had one and that 51% haven't used this year's allowance. An ISA really should be the first port of call for your savings as you can earn interest without it being taxed, giving you a better return and ultimately putting more money in your pocket. Using your allowance each year can be a great way to help you towards your long term savings goals; as your tax free savings pot grows so will the interest you earn. Getting an ISA is really straightforward, shop around for the best deal for you and consider managing your account online as these accounts may offer you a higher rate of interest. Remember you only have until 5 April to use your tax free allowance this year."

Other findings showed that 18-24 year olds are the least likely to have an ISA, with 50% admitting they've never had one while 9% of 25-34 year old's thought ISA was a text speak abbreviation. Those aged 45-54 (96%) and 55+ (95%) were most likely to know what as ISA was and correctly identify the cash limit (63% and 62% respectively). Those in the North West and East Anglia were the most likely to have saved this year's allowance (both 54%) while those in Northern Ireland were least likely to have made the most of tax free saving (just 38%).

About Confused.com:
Confused.com is one of the UK's biggest and most popular price comparison services. Launched in 2002, it generates over one million quotes per month. It has expanded its range of comparison products over the last couple of years to include home insurance, travel insurance, pet insurance, van insurance, motorbike insurance, breakdown cover and energy, as well as financial services products including credit cards, loans, mortgages and life insurance.

Confused.com is not a supplier, insurance company or broker. It provides a free, objective and unbiased comparison service. By using cutting-edge technology, it has developed a series of intelligent web-based solutions that evaluate a number of risk factors to help customers with their decision-making, subsequently finding them great deals on a wide-range of insurance products, financial services, utilities and more. Confused.com's service is based on the most up-to-date information provided by UK suppliers and industry regulators.

Notes to editors:
Research conducted by OnePoll on behalf of Confused.com December 2010.

Standard Life makes ISA investment easy

Tue, 22 Feb 2011 10:04:55 GMT

Standard Life, the long term savings and investment company, has launched a new online Stocks and Shares ISA, available via its website, aimed at simplifying investment options for people who want to manage their ISA investments online but are not sure what funds to choose.

The new online Stocks and Shares ISA offers access to the full fund range but importantly people can now also access the MyFolio range of risk based portfolios. These offer people a simple choice of active investment strategies designed to maximise potential returns across five risk levels.

Mark Till, director, Standard Life commented: "Our customer research indicates that while many people understand the tax efficiencies of stocks and shares ISAs and want to manage their investment online, they can often feel overwhelmed by the choice of investment funds on offer.

"Our new Stocks and Shares ISA provides customers with a simple and supportive online application process, but crucially it also offers access to ready-made investment strategies.

"People can assess the level of risk they are comfortable with and match themselves to the appropriate investment strategy knowing the hard work will be done for them by our investment team."

The MyFolio fund range should also appeal to people who are looking to broaden their investments beyond Cash ISAs. The new, simplified risk based choices will give customers the confidence to start investing in stocks and shares ISAs ahead of the tax deadline on 5th April.

Standard Life's Stocks and Shares ISA can be started with a regular payment of £50 a month or a single payment of £500. Additionally, customers can choose to consolidate existing ISA investments within their chosen strategies and keep track of their investments online via Standard Life's FundZone.

About Standard Life:
Standard Life is a leading long term savings and investments company headquartered in Edinburgh and operating internationally. Established in 1825, Standard Life provides life assurance, annuities, investment funds, tax efficiencies, pensions including self invested personal pensions (SIPP) company pensions and employer pensions, and investment management to over 6.5 million customers worldwide.

Standard Life provides flexibility and support to build its customers' confidence in their future wealth.

Standard Life operates in the United Kingdom, Europe, North America and Asia Pacific, and globally with Standard Life Investments.

Northern Rock adds online options to its growing cash ISA portfolio

Mon, 21 Feb 2011 09:56:29 GMT

Northern Rock is launching a range of brand new online ISAs to complement its competitive portfolio of branch, postal and online savings accounts.

The new e-ISA account offers those who prefer to operate their accounts via the internet, an online option for their tax-free* savings. e-ISA is available either as an instant access account, or as a fixed rate cash ISAs, set at a competitive rate of interest over a choice of one, two or three years.

Northern Rock's Customer and Commercial Director Andy Tate said: "Our customers want options. They want to be able to choose the best account to meet their individual needs, whether that be tax-free or not, and variable or fixed rate.

"They also want to be able to choose the most convenient method by which to operate their account - by telephone, post, in branch or online. Northern Rock is proud to be able to offer fixed and variable rate savings accounts, as well as fixed or variable tax-free options, via every one of the available channels with the launch of our new e-ISA.

"This demonstrates we are committed to listening to our customers and giving them what they want, a bank that works for them."

The e-ISA account provides a variable rate of interest, and easy access to funds. With no minimum opening deposit, e-ISA (instant access) pays a competitive flat rate of 2.65% tax free*/AER** pa on balances of £1+ (balances falling below £1 will earn Northern Rock's prevailing rate of interest, 0.10% gross***/AER** pa).

The product welcomes additional deposits and transfers in within HM Revenue and Customs limits (£5,100 pa from April 2010). Interest, which can be added to the account or paid into another savings account, is paid annually on 11 March (available the next business day or within three business days if sent by BACS to another account).

Notice-free withdrawals (minimum £1 by BACS, minimum £250 by CHAPS) can also be made from the account (there is a £35 fee for transfers via CHAPS). Notice-free transfers, which require a signature, can also be made (these may take up to five days to process).

For those who prefer to earn a fixed rate of interest on tax-free* savings, a range of Fixed Rate e-ISAs can be opened with no minimum initial deposit.

Notes to Editors:
*The tax-free rate is the contractual rate of interest payable where interest is exempt from income tax.
**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.
***GROSS is the rate of interest paid to eligible non-taxpayers without deduction of tax.

About Northern Rock:
Northern Rock plc is a new bank, authorised by the FSA as a deposit taker and mortgage lender from 1 January 2010. It offers savings accounts, such as ISA savings, to customers in the UK and Ireland and mortgages to UK borrowers. New products are offered through both direct channels - including a national branch network - and mortgage intermediaries.

Northern Rock enhances its Easy ISA

Fri, 08 Oct 2010 14:42:06 GMT

Northern Rock has improved the variable rate cash ISA account, which offers a competitive tax-free* interest rate for a minimum deposit of just £1. The improvements follow the success of Northern Rock's recently launched Easy ISA.

Easy ISA can now be opened and administered by post, as well as in branch. It can also be opened over the telephone from the comfort of customers' home.

The improved Easy ISA account provides a variable rate of interest, and offers easy access to funds. A minimum deposit of only £1 is needed to open the ISA, which offers a competitive flat rate of 2.50% tax free*/AER** pa, and the option to transfer across existing Cash ISAs.

The product welcomes additional deposits and transfers within HM Revenue and Customs limits (£5,100 pa from April 2010). Interest, which can be added to the ISA account or paid into another account, is paid annually on 30 November (available the next business day).

Charge-free and notice-free withdrawals and transfers (minimum £1) can also be made from the account (there is a £35 fee for transfers via CHAPS).

Application forms for all products are available by phone on 0845 631 5151, or through the website www.northernrock.co.uk (Calls are charged at the service provider’s prevailing rate and may be monitored and recorded.)

-Ends-

Northern Rock continues to operate within the compensatory measures agreed with the EC as part of the State Aid approval announced in October 2009.
Northern Rock plc - Registered in England and Wales (Company No. 6952311).
Registered Office: Northern Rock House, Gosforth, Newcastle upon Tyne, NE3 4PL.
Authorised and regulated by the Financial Services Authority.

NS&I reveal Britons not yet planning for new ISA limits

Mon, 22 Feb 2010 10:10:33 GMT

NS&I has revealed new research that shows people across Britain are not yet planning for the changes to ISA entitlements this year and risk missing out on tax-free returns. Just 15% of Britons surveyed say they understand the new limits, which enables individuals to save up to £10,200 per year tax-free.

Research shows that a quarter (25%) of those surveyed incorrectly believe ISA allowances will remain the same in the new financial year while 24% are aware new changes are due, but are unsure what these will be. A further 10% think the ISA limit will be higher for over 50 year-olds only, which is no longer the case once the changes come into effect

It is not just the changes to the ISA entitlement that Britons are unsure of, but ISAs in general.16% of those who are aware of ISAs say the reason they haven't invested in an ISA is because they find it confusing, while one in ten people (10%) admit that saving money in an ISA this year has never occurred to them.

John Prout, Sales Director at NS&I said: "The fact that all interest earned in an ISA remains tax-free means it's a must-have product for people looking to maximise their hard earned savings. Understanding the allowances and reviewing the terms of the product is vital for savers. With less than two months to go until the end of the tax year, there is no time like the present for everyone to check their finances and plan to benefit from tax-free savings."

Uncertainty about ISAs can result in people failing to take full advantage of their entitlement. Just 16% say they will definitely use their full tax-free ISA allowance and feel it is important to do so. 15% of the population say they will take up a proportion, but do not expect to use all of it.

35% of people aware of ISAs have been put off the account in general by the current low ISA interest rates on offer, while under a third (29%) of people say they are not planning to use their full ISA allowance because they can't afford to. A similar number of people (31%) say the current climate and outlook for 2010 means they will look at other financial products, rather than ISAs. 29% say wider economic pressures have also led them to start diversifying their financial portfolio, perhaps a reason for not using the full entitlement.

-ENDS-

Notes to editors:
The Savings Survey (Previously the Quarterly Savings Survey)
The winter 2010 omnibus survey was conducted by TNS, amongst 2007 respondents between 29 and 31 January 2010.

About NS&I:
NS&I is one of the UK's largest financial providers with almost 27 million customers and over £96 billion invested. It is best known for Premium Bonds, but also offers Inflation-Beating Savings, Guaranteed Equity Bonds, cash ISA and Children's Bonus Bonds in its range. All products offer 100% security, because NS&I is backed by HM Treasury.

NS&I products are available over the telephone, internet, post and by standing order. They are also available through a network of Post Office® branches, and our product range guide is available in over 300 WHSmith high street stores.

M&S Money launches new flexi cash ISA option

Wed, 10 Feb 2010 17:16:10 GMT

M&S Money has announced the launch if its new flexi cash ISA option, offering a variable rate of 2.65% AER/tax-free*. This includes a bonus rate of 1.25% for 18 months from initial deposit.

Research commissioned by M&S Money** revealed that people are now more concerned about easy access to their savings (53% compared to 22% in 2009) and are looking for interest rates with a bonus, as well as fixed rates. When asked what an important factor was to them when putting money into savings, 56% of respondents wanted a savings provider they could trust, compared to 34% in 2009.

The new Flexi Cash ISA requires a minimum deposit of £100 to be made, either paid in one lump sum or £25 by monthly direct debit, up to the Cash ISA allowance of £3,600 or £5,100 per tax year. Transfers from other ISA providers are also allowed under the Flexi Cash ISA.

Flexi Cash ISA is one of the options customers can use within the M&S Cash ISA account to divide their tax free savings allowance between variable and fixed rates. From April 2010, the new limit for Cash ISA savings will be £5,100 per tax year for everyone aged 16 and over. This new limit will already exist for those aged 50 and over from early April 2010.

As an example, with the M&S Cash ISA, a customer would be able to save £2,550 in the variable Flexi Cash ISA option, and the remaining £2,550 in one of the fixed rate savings options available.

Colin Kersley, Chief Executive of M&S Money, commented: "Our research shows that more people than last year are looking for a savings provider they can trust. At M&S Money we have been providing a safe home for customers' savings for many years, and the company itself is 25 years old this year.

"We are also part of HSBC, one of the world's largest banking and financial services organisations, and are continuing to develop our savings range. Cash savings are protected under the UK Financial Services Compensation Scheme and the first £50,000 of our customers' savings are 100% guaranteed."

Notes to Editors:
*AER is the Annual Equivalent Rate and illustrates what the rate of interest would be if interest was paid and compounded on an annual basis. Tax free means the rate of interest where interest is exempt from income tax. Interest will be credited to your account annually.
**Research carried out on behalf of M&S Money by YouGov 26th - 28th January 2010, among 2,044 people aged 18 and over. The survey was carried out online. The figures have been weighted and are representative of all GB adults (aged 18+).

About M&S Money:
M&S Money (the trading name of Marks & Spencer Financial Services) was founded in 1985 as the financial services division of Marks and Spencer Group plc, making 2010 the company's 25th anniversary. The company is a top-ten credit card provider and the second largest travel money retailer in the UK. M&S Money also offers a range of insurance cover, including home insurance and car insurance , as well as loans, savings and investment products.

In November 2004, Marks & Spencer sold M&S Money to HSBC. HSBC Holdings plc, the parent company of the HSBC Group, is headquartered in London. The Group serves customers worldwide from around 8,500 offices in 86 countries and territories in Europe, the Asia-Pacific region, the Americas, the Middle East and Africa. With assets of US$2,422 billion at 30 June 2009, HSBC is one of the world's largest banking and financial services organisations. HSBC is marketed worldwide as 'the

Lloyds TSB reports majority of over 50s unaware of October ISA limit increases

Fri, 25 Sep 2009 16:17:35 GMT

Lloyds TSB has revealed new research* that shows two thirds (61 per cent) of over 50s do not understand the approaching ISA changes which will enable more than 21 million savers to benefit from an increased tax free savings allowance.

As part of this year's budget, the Chancellor announced that the total ISA limits would increase from £7,200 to £10,200, £5,100 of which can be saved in cash. For those born on or before 5th April 1960 the new limits come into effect on October 6th, whilst younger customers will need to wait until the start of the 2010/2011 tax year next April.

Despite the imminent changes, the findings show that just 15 per cent of over 50s know that the new ISA limit will be set at £10,200. Four out of ten over 50s are not even aware that increases have been announced.

Lloyds Banking Group customers can take full advantage of the increased limits, as the Group has confirmed that all of its ISA products will accept top ups when the new rules come into effect on 6th October.

Colin Walsh, managing director of savings and investment, Lloyds Banking Group commented: "As the UK's largest ISA provider, we want our customers to be able to reap the benefits of the new rules and make use of their entitlement. This historic low rate environment has meant a challenging time for savers, especially for those who rely on returns to supplement their monthly income, so maximising your full tax free allowance has never been more important."

Savers will be able to top up their existing ISA balance in any of the Group's fixed and variable rate cash ISAs, as well as investment ISA products. New customers can also take advantage of the new entitlement and open one of the competitive products offered by the Group's ISA brands, which include Halifax, Lloyds TSB, Scottish Widows, Bank of Scotland, Cheltenham & Gloucester, Birmingham Midshires and Intelligent Finance.

Colin Walsh continued: "Traditionally the ISA transfer market peaks in April around the new tax year, but this year's changes will no doubt result in a 'mini ISA season' as savers look to take advantage of competitive rates on an increased balance."

Earlier this year, Lloyds Banking Group announced its participation in electronic transfers for the cash ISA market, allowing customers to benefit from a more efficient process and reducing the delays caused by sending cheques in the post.

-ends-

Notes to editors:
* Lloyds Banking Group commissioned research by OnePoll of 500 consumers over 50s during August 2009.

About Lloyds TSB:
Lloyds TSB offers customers a wide range of current accounts, savings accounts, insurance, personal loans and credit cards, investment and cash ISA accounts designed to meet different customers' needs.

Lloyds TSB Bank plc and Lloyds TSB Scotland plc are authorised and regulated by the Financial Services Authority and signatories to the Banking Codes.

Lloyds TSB Bank plc Registered Office: 25 Gresham Street, London EC2V 7HN. Registered in England and Wales no. 2065.

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