Overview

• Newcastle Building Society reduced rates by 0.25 percentage points on 37 variable-rate savings accounts effective June 5, including the Double Access Saver/ISA and Cash Lifetime ISA.
• Fixed-rate accounts and two recently launched products, the Loyalty Saver and Quadruple Access Saver/ISA, were exempt from the cuts.
• The move mirrors the Bank of England’s May 8 reduction of its base rate from 4.5% to 4.25%, which spurred similar cuts by Nationwide on June 1, HSBC on June 3 and NatWest in late May.
• The building society serves around 400,000 customers whose returns on affected savings products will now be lower.
• Spring Savings managing director Derek Sprawling recommends that savers compare rates on comparison sites or consider fixed-rate products to counter inflation’s erosion of returns.