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Media centre /
Press releaseBRAND NEW DIRECT ISA FROM NS&I03 April 2006
National Savings and Investments (NS&I) is to launch a Direct ISA – available from 6 April 2006, online and by telephone – which pays a competitive interest rate of 5.05% per annum, guaranteed to stay 0.55% above the Bank of England base rate for at least the next two years. Direct ISA customers will be able to invest up to £3,000 each tax year and make subsequent deposits, carry out balance checks, look at their transaction history and make withdrawals online 24 hours a day and by phone between 7 a.m. and midnight, seven days a week. And the Direct ISA comes with the 100% capital guarantee which NS&I can offer because all of its savings and investments are backed by HM Treasury. Direct ISA key features
Growing demand NS&I’s new Direct ISA is being introduced in response to growing demand among time-strapped savers to manage their finances online and by phone. Recent research from NS&I has found that 23% of people who admitted to being out of touch with their finances said they were too busy to keep on top of them. (See notes to editors, 1) Internet access has also been on the increase over the past five years, rising from around 37% of UK households with access in April 2001 to almost 55% in April 2005 and, during 2004, around 34% of internet users said they went online for personal banking or financial services. (Office for National Statistics) NS&I sales director, John Prout, said: “Our Direct ISA offers customers a great opportunity to save tax-free, with the convenience of 24-hour online access to your account and the additional flexibility to carry out transactions by phone. “Money saved in our Direct ISA will also earn a really competitive rate of interest and we guarantee this to beat the base rate by more than half a per cent for the next two years. It is a straightforward, guaranteed offer and we would not confuse or short-change our customers with short-term introductory rates or any other hidden features.” Tax advantages The new Direct ISA is an addition to NS&I’s range of tax-free products. As well as a Cash mini ISA – currently paying 4.20% per annum – NS&I also offers Premium Bonds, Inflation-Beating Savings, Fixed Interest Savings Certificates and Children’s Bonus Bonds. All interest earned on these savings is free of UK income tax. ENDS Notes to editors 1. NS&I Quarterly Savings Survey, winter 2006. 2. NS&I’s Direct ISA goes on sale at 00:01 on Thursday 6 April. Product information will be on NS&I’s website www.nsandi.com from 00:01 on Saturday 1 April and brochures will be available from NS&I direct on 0845 964 5000 from Wednesday 5 April.
Media team The numbers below are for media use only. Customers wishing to contact NS&I can find details here.
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