The tax free savings option
Cash ISA Interest Rates
The Cash ISA offers a winning combination of quick access, tax free savings and competitively high interest rates.
Full details of our interest rates can also be obtained 24 hours a day, on our Interest Information Line — 0870 845 0829.
| Effective from 1st May 2008 | ||||
| Balances | Gross Interest Rate* | Annual Equivalent Rate* including bonus | Annual Equivalent Rate | |
|---|---|---|---|---|
| £50,000 and over | 5.41% | 5.04% | 4.66% | |
| £25,000 to £49,999 | 5.36% | 4.99% | 4.61% | |
| £10,000 to £24,999 | 5.31% | 4.94% | 4.56% | |
| £100 to £9,999 | 5.26% | 4.89% | 4.51% | |
*The above rate includes a 0.75% interest rate bonus for new customers in the first 6 months.
As a comparison the following table shows rates previously available (including introductory bonus) from Scottish Widows Bank on the same account from 1st May to 30th April 2008.
| Balances | Gross Interest Rate* | Annual Equivalent Rate* including bonus | Annual Equivalent Rate |
|---|---|---|---|
| £50,000 and over | 5.66% | 5.29% | 4.91% |
| £25,000 to £49,999 | 5.61% | 5.24% | 4.86% |
| £10,000 to £24,999 | 5.56% | 5.19% | 4.81% |
| £100 to £9,999 | 5.51% | 5.14% | 4.76% |
*The above rate includes a 0.75% interest rate bonus for new customers in the first 6 months.
Definitions
On the interest rate table you may see some terms you are unfamiliar with. These are:
Gross — This is the contractual rate of interest payable not taking account of the deduction of income tax at the lower rate.
Tax Free — This is the rate payable where interest is exempt from income tax.
AER — Stands for Annual Equivalent Rate, and illustrates what the interest rate would be if interest was paid and compounded once each year.
The AER advertised is based on interest paid and capitalised to the account once a year — please note that the actual interest rate on your account will be lower if you choose to have interest applied more frequently.
