New and increased Cash ISA rates from Cheshire Building Society

02 March 2012

On Friday 2 March 2012, the Cheshire Building Society, which is part of the Nationwide Group, will be increasing the rate on its Direct Cash ISA – Issue 1 and launching a new issue of its Direct Fixed Rate ISA.

Direct Cash ISA – Issue 1
From 2 March 2012, the rate on the Direct Cash ISA will increase to 3.16% AER* tax-free (variable). The new rate is applicable to both new and existing Direct Cash ISA customers on balances of £1,000 or more. The rate includes an introductory fixed bonus of 2.16% AER* tax-free until 30 September 2013.

Open to new ISA subscriptions only, Direct Cash ISA – Issue 1 is available to those savers who have not started to use their 2011/12 cash ISA allowance of £5,340. Savers can open Direct Cash ISA either online or by phone and are able to make as many deposits and withdrawals as they like by post without loss of interest.

Cheshire Building Society will write to customers around a month before bonus expiry to notify them that their bonus is coming to an end.

  Direct Cash ISA – Issue 1
Availability Online or phone, manage by post
Withdrawals Unlimited, free withdrawals
Deposits Unlimited, up to annual cash ISA allowance
Min. opening balance £1,000
Min. operating balance £1

Direct Fixed Rate ISA – Issue 2
A new issue of the Direct Fixed Rate ISA will be launched on 2 March 2012. Direct Fixed Rate ISA – Issue 2 is an 18-month fixed rate cash ISA paying 3.75% tax-free (3.70% AER) on balances of £1,000 or more.

The Direct Fixed Rate ISA – Issue 2 can be opened either online or by telephone and is open to new subscriptions only. The minimum opening balance is £1,000 with a maximum balance based on the current cash ISA allowance of £5,340.

Interest is paid on maturity and is paid back into the account. Withdrawals are not permitted during the term of the account but closures can be made subject to 180 days’ loss of interest. 

  Direct Fixed Rate ISA – Issue 2
Availability Online or phone, manage by post
Withdrawals No withdrawals permitted during the term of the account. Transfers/closures are permitted subject to 180 days’ loss of interest
Deposits Following the opening deposit, no additional deposits can be made
Min. opening balance £1,000
Max. balance As per maximum ISA allowance (£5,340 in 2011/12)

Darren Bailey, Head of Savings Pricing at the Cheshire Building Society, said: “Savers have just over one month to go to make full use of their cash ISA allowance for the current tax year before it is lost for good. These new, increased rates will offer savers a competitive return on their ISA savings. Anyone opening our 18-month fixed rate cash ISA for instance, with a similar rate to the competitive two-year accounts currently on the market, will benefit from a higher rate without needing to tie their money up for as long. In life there are very few opportunities to ‘beat the tax man’ and so we would encourage anyone who has not already done so, to consider these Cheshire ISAs and make full use of their ISA allowance before April 5.”

Notes to editors:
* AER stands for Annual Equivalent Rate and illustrates what the interest rate would be if interest were paid and compounded once each year. Tax-free is the contractual rate of interest payable where interest is exempt from income tax.

  • Applications are required for all products. Further details of terms and conditions available on request.

Interest Rates

Direct Cash ISA – Issue 1 AER tax-free
£1,000+ 3.16% (variable)**
£1 - £999 (variable) 0.25%

** Includes 2.16% bonus fixed until 30 September 2013.

Direct Fixed Rate ISA – Issue 2 AER Tax-free
£1,000+ 3.70% 3.75%

Apply online at thecheshire.co.uk or by phone on 0808 144 3880.

The Cheshire Building Society is a Trading Division of Nationwide Building Society.

Please note: If you are a customer looking for information on our products and services, please visit the main website.