Newcastle BS Big Home Saver ISA - interest rate query

garfield33

Newcastle Building Society Big Home Saver ISA (Issue 1)

Hi everyone, this is not an urgent query – just curious about something. 

I recently had a letter saying that the interest rate (excl. bonus) is dropping from 0.50% to 0.10%, however the previous email I had from them in August 2016 said that it was going to 0.25%.

The document on their website says it's currently 0.50% too: https://www.newcastle.co.uk/NewcastleBuildingSociety/media/Documents/savings%20-%20interest%20rates/Current-Savings-Interest-Rates.pdf.

Does anyone know what happened to the 0.25%?

As I said, it’s not important, I only have a little bit of money in there, I’m just curious if anyone knew the answer (I don’t like my spreadsheets to be incorrect!)

Thanks all, stay safe

G33

masonic

They wouldn't have had to notify you if they increased the rate since 2016.

eskbanker

It'll seem like a long time ago now but there were base rate increases between 2016 and 2020, and Newcastle bumped up some of their savings interest rates accordingly in 2018, so a rise from 0.25% to 0.5% at some point during those four years seems plausible, although you'd expect them to notify customers of this....

badger09

I'm pretty sure Newcastle has increased the interest rate on many (all?) of its variable rate accounts in response to increase in base rate in the past. That would explain it and as masonic said, they're not obliged to tell you.