Brand new Direct ISA from NS&I
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
- Invest online and by phone only with a debit card Interest rate guaranteed to be 0.55% above base rate until 5 April 2008
- Consistent interest rate: no short-term introductory bonus
- Convenience of opening and managing account online and by phone
- Minimum deposit: £1,000
- Minimum further deposit: £250 (or £100 by standing order)
- Withdrawals: apply online or by phone
- Minimum withdrawal: £250 to nominated bank account
- Invest from 6 April 2006
- All interest free of UK income tax
- Direct ISA will be open to new customers and those who have an NS&I Cash mini ISA, but it will not be possible to transfer into NS&I’s Direct ISA from any other ISA provider. This is to attract and retain customers who wish to save with NS&I because of the security, value and accessibility on offer.
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 shortchange 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.
Notes to editors
- NS&I Quarterly Savings Survey, winter 2006.
- 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.