Newcastle Building Society Delivers on Rate Increase Promise to Savers

Following the Bank of England’s announcement of a 0.25% interest rate increase, the North East’s biggest building society is delivering on its promise to pass on the rise to its individual variable rate savings customers.

As part of a commitment to supporting both existing and potential new savers, Newcastle Building Society has now increased the rate on its Community Saver Account (Issue 2) to 1.00% gross/AER*, making it one of the most competitive easy access savings accounts on the high street.

The account is available to open and operate online or in any Newcastle Building Society branch, allowing  easy access to savings without notice or penalty.

Changes to all of the Society’s individual variable rate savings customers will be implemented by 1st December 2017.

The Newcastle Community Saver Account not only provides a home for savings but also benefits North East community causes.  The Society donates the equivalent of 0.10% of balances held in the accounts to the Newcastle Building Society Community Fund at the Community Foundation, which provides grants of up to £3,000 to charities and community groups across the North East and Cumbria.

Since its launch in June 2016, the Community Fund has benefited 49 different community projects nominated by the Society’s customers, positively impacting an estimated 70,000 people. An announcement of a further 32 grants with a total value exceeding £60,000 is expected early next week.

Summary Box
Account Name	Newcastle Building Society Community Saver Account (Issue 2)
What is the interest rate?		Annual Gross*/AER** 1.00%/1.00% (Variable)	Monthly Gross*/ AER** 1.00%/1.00% (Variable)
Interest is paid on: Annual anniversary of account opening.	Interest is paid on: Monthly anniversary of account opening.
Can Newcastle Building Society change the interest rate?	We can change the rate of interest payable on this account. The account is a variable rate account which means that the rate of interest paid may change throughout the lifetime of the account. Please refer to point 6 of the Savings General Terms & Conditions which sets out the reasons for which Newcastle Building Society may change the interest and the procedure for doing so.
What would the estimated balance be after 12 months of account opening based on a £1,000 deposit? How do I open and manage my account?		Annual (Variable) £1,010	Monthly (Variable) £1,010
Please note: This projection is provided for illustrative purposes only and does not take into account customer’s individual circumstances. This projection is based on an initial £1,000 deposit and no further deposits or withdrawals are made.
Opening your account: In branch or online. For existing customers you can also log in to your Newcastle Building Society account online. Giving us instructions for your account: In branch, by post, by telephone, online or by secure message (for accounts opened and operated online)
Minimum Opening Deposit: £1 Maximum Opening Deposit: £250,000 Maximum Account Balance: £250,000 (plus any resulting interest).
Can I withdraw money?	Withdrawals/transfers can be made penalty free without notice.
Additional Information		Tax Status: Charitable Donation:	Interest will be paid gross* which means no tax is deducted. It is your responsibility to pay any tax due, based on your individual circumstances On a quarterly basis the donation amount will be donated to the Community Foundations to be held as part of the Newcastle Building Society Community Fund. The donation amount will be calculated quarterly by taking the balance invested into all Newcastle Building Society Community Saver accounts at the end of each of the three months, adding the balance together, dividing by 3 to calculate the average balance, multiplying this amount by 0.10% and dividing the total by 4 as it’s a quarterly donation. For example if the balance at the end of January was £250,000, February £275,000 and March £300,000 then the average balance in quarter 1 would be £275,000; the Society will then donate £68.75. Any estimate of the likely amount to be donated by the Society to the Community Foundation in the course of the next year will depend on the amount invested in accounts opened as part of the Newcastle Building Society Community Saver Account scheme. Based on an estimated investment total in Community Saver accounts of £25 million in the first year, it is estimated that the total donation of £25,000 would be made in the first year. The donation amount will be fixed until 24th August 2020. On or after 24thAugust 2020 the donation amount will fall to 0.0%.