Interest rates: Monthly Reward ISA

Current interest rate

Effective 29 March 2009

Balance £	Interest Type	Tax-free Rate % (variable)	AER % (variable)
£10 and above	Monthly Interest	2.23%	2.25%

Previous interest rate

Effective 22 February 2009

Balance £	Interest Type	Tax-free Rate % (variable)	AER % (variable)
£10 and above	Monthly Interest	2.72%	2.75%

Examples of interest paid

Below are some examples of the AER* that would apply depending on the number of withdrawals over the course of a year. Each is based on withdrawals of £100.

Example	No. of months in which withdrawals are made	Withdrawal  made in December?	Tax free monthly interest rate (where applicable)	AER % (variable)
1	None	No	2.23%	2.25%
2	One	Yes	2.23%	2.25%
3	Six	Yes	2.23%	1.17%
4	Twelve	Yes	2.23%	0.14%

Each of the examples assumes the account is opened with a subscription of £3,600 in April.

• In example 1 no withdrawals are made throughout the year.
• Example 2 assumes no withdrawals are made through the year apart from December when 1 withdrawal is made.
• Example 3 assumes £100 withdrawals are made in alternate months starting with the month of account opening. Interest is still paid in December.
• Example 4 assumes £100 withdrawals are made in each month of the year starting with the month of account opening. Interest is still paid in December.

*AER stands for Annual Equivalent Rate and shows you what the interest rate would be if interest was paid and added each year. This will enable you to compare more easily the return you can expect from your savings over time.

• Interest rates for all savings accounts

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