The Newcastle Big Home Saver account and Isa account pay regular savers who do not make any withdrawals a bonus rate of 2.54 per cent.
The amount without the bonus rate is 1.54 per cent. These two rates have been increased from 2.4 per cent and 1.4 per cent.
Customers qualify by making at least one deposit, a minimum investment of £1 pound and no withdrawals in each bonus qualifying period, which is one month. However, customers can withdraw funds without notice and there is no penalty charge involved.
For the saver in the range of £5,000 to £9,999, two products offer a £500 cash reward cheque on mortgage completion if the customer buys a house by taking a mortgage with the Society. The bonus will be up to £1,000 for savers of £10,000 or more.
Both accounts are available to open in stores, online and by post. The Interest and Bonus are paid on the Monthly Anniversary of Account opening.
Newcastle Building Society’s spokesman said: “The product has the added element of the cash bonus of up to £1,000, after successfully saving and completing a mortgage with NBS. The product is also ideal for customers who need a regular savings account paying a competitive rate.”
Sarah Fullaway (pictured), former director of Derby-based Oviso, said: “It is good to have another product to recommend, especially with this policy’s unique selling points. “Cirencester has a good claims record and should pick up a lot of business on this product. “I really like the name too: My Earnings Insurance explains the product in layman’s terms. It is a great title people will relate to.”
There are no charges applied for opening one of these accounts, withdrawals are penalty-free and without notice. In any given month that a withdrawal is made, the ‘without bonus’ rate above will be payable.
The higher interest rates and cash-back deals will appeal to those saving for their first home. The variable interest rates enable customers to benefit from the potential interest rate increase. But given the current low rates in the market, savers find it is difficult to make money from their savings.