Newcastle Building Society: Savings accounts and interest rates
Find out more about the savings account options on offer from Newcastle Building Society.
Newcastle Building Society is the biggest building society in the North East, with a history spanning over 150 years.
These days people across the UK can open a range of savings account options with this North East mutual, from fixed rate bonds to ISAs, as well as other options.
Read our guide to find out if any of Newcastle Building Society’s savings accounts are for you.
What's in this guide?
- Newcastle Building Society instant access savings accounts and interest rates
- Cash ISAs and rates
- Fixed-rate bonds
- Newcastle Building Society savings accounts in detail
- What other savings account options are there?
- How do I decide which account is for me?
- What are the pros and cons of banking with Newcastle Building Society?
- Frequently Asked Questions
What is a building society?
A building society is a financial institution owned by its members. Building societies offer banking and related financial services including mortgages and savings.
Whereas banks are normally listed on the stock market and operate for their shareholders, building societies aren’t. Because they don’t have shareholders to pay, building societies have historically claimed to offer better interest and cheaper mortgage rates than banks.
Newcastle Building Society instant access savings accounts and interest rates
Cash ISAs and rates
Newcastle Building Society savings accounts in detail
Newcastle Cash Lifetime ISA (LISA)
- Available if you’re aged 18-39.
- Market leading rate for a lifetime ISA.
- Get a government bonus of 25% on your contributions each month.
- However, a government penalty of 25% applies if you take the money out, unless it’s for your first home, you have a terminal illness or in the event of your death.
- Can only open online.
Fixed cash ISAs
- Fixed terms of between 1-5 years.
- Pay no tax on the interest you earn.
- Higher interest rates in return for locking your money away.
- You’ll be fined varying amounts for early withdrawals.
- Available in branch or online.
Easy access ISA
- Start saving with as little as £1.
- You can open online or in branch.
- Withdraw as often as you like – no penalties.
- Lower interest rates despite the ease of access.
ISAs for buying a home
- There are three options, including the lifetime ISA discussed above.
- Start saving with as little as £1.
- With the Help to Buy ISA you get a government bonus too: £50 on every £200 you save. Up to £3000 maximum.
- Newcastle First Home ISA also gives a bonus of a higher interest rate for regular savers.
What is a cash ISA?
A cash ISA is a savings account where you don’t pay tax on the interest you earn. There’s a limit on the amount you can deposit into ISAs each year, which is set by the government.
What other savings account options are there?
Newcastle Building Society also offers three other savings options which aren’t ISAs: fixed rate accounts, easy access accounts and regular saver accounts.
Fixed rate accounts
- Put money away for between 1-5 years.
- Better interest rates than easy access accounts, but no withdrawals until account maturity.
- Put in between £500 and £250,000.
- Available in a branch or online.
Regular saver account
- Start with a deposit of between £1 and £10,000.
- Thereafter you put in between £1 and £10,000 a month.
- Maximum account balance of £40,000.
- If you make withdrawals you are penalised and given the far lower interest rate.
- So, if you’re likely to make withdrawals often, take the easy access account option described below.
Much like the easy access ISA, the easy access account option lets you withdraw whenever you like without any penalties. You can put in between £1 and £250,000, so it’s an account for anyone really. However, you won’t get sizeable returns on your money.
How do I decide which account is for me?
Firstly, you need to decide what you’re looking for in a savings account. How often are you planning to draw out money? How much money can you afford to save each month?
You need to work out what you need before comparing the different offers available for certain types of savings accounts. Once you’ve done that, it’s useful to look at:
- Interest rates.
- Fees (if there are any).
- Access to cash (if you need quick access, for instance).
- Rewards and loyalty schemes (if you’re into add-ons or switching bonuses).
What are the pros and cons of banking with Newcastle Building Society?
- Online banking. Even if you’re not based in the North East, you can open an account with the Newcastle Building Society online.
- Choice. Newcastle Building Society offers a whole range of savings accounts. Whether you’re looking to save big or small.
- Easily accessible. It lets customers manage their accounts in a branch, online, over the phone or by post.
- Market leading LISA rate. Its Cash Lifetime ISA comes with a 25% government bonus and has a market leading interest rate. Not bad.
- Better rates elsewhere? It’s not market leading for all its savings account options. It’s always worth shopping around.
- Remote. If you prefer face-to-face banking and you don’t live in the North East of England, then you may have problems with this Building Society.
Frequently Asked Questions
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