Northern Rock Reveals Savers are Losing out on GBP1 Billion in ISA Interest

NEWCASTLE UPON TYNE, England, April 19, 2011 - Northern Rock has revealed that UK ISA savers are missing out on around
GBP1 billion of interest each year that they could be earning if they shopped
around.

Cash ISAs or Individual Savings Accounts (
www.northernrock.co.uk/savings/ ) 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 GBP60 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 GBP1 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 (
www.northernrock.co.uk/savings/Find/Results/ISAs/ ) subscription limit
increased to GBP5,340 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 (
www.northernrock.co.uk/savings/Find/Results/ISAs/ ) 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 GBP16 billion of savings balances and
GBP12 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 (
www.northernrock.co.uk/Mortgages/Find ) 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 GBP999 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.

    PR Contact:
    Jule Wilson
    Northern Rock House
    Gosforth
    Newcastle upon Tyne
    NE3 4PL
    +44(0)191-279-4676

www.northernrock.co.uk

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