Warning as building society to cut interest rates on dozens of accounts
Rates on 37 personal savings accounts will be slashed (Picture: Getty)
A large building society is planning to cut interest rates on dozens of personal savings accounts.
Newcastle Building Society is dropping rates on 37 of the personal accounts they offer by 0.25%.
The change comes after the Bank of England reduced interest rates to 4.25% in early May.
Banks tend to look at the base rate when deciding their own savings rates, and lower inflation meant people could stash more money away with a higher return.
Newcastle Building Society is following suit, and the changes will affect many of the savings accounts it offers.
The Newcastle Cash Lifetime ISA will be lowered to 2.45%, and the Double Access Saver/ISA will be at a new rate of 3.80%.
The move follows the Bak of England's lower interest rates (Picture: Getty)
The Regular Saver Plus will drop to 2.25%, and the Newcastle Junior Cash ISA is now 3.5%.
The building society said: 'These changes will come into effect on June 5th. Members with fixed-rate savings accounts will see no changes to their interest rate.'
Many other banks are also cutting their savings rates, so now may be a good time to go hunting for some decent deals if you're looking for somewhere to place your savings.
This time last year, the Bank of England interest rate was at 5.25%- its highest point since the beginning of the financial crisis in 2007.
That only started to change in the summer, with a 0.25% reduction – the first cut in more than four years – coming in August.
The rate fell another 0.25% in November, as the Bank became increasingly confident that inflation was under control.
At the next Monetary Policy Committee meeting in February, a further 0.25% decrease was agreed.
Bailey said the Bank would be taking a 'gradual and careful approach to reducing rates further' for the rest of 2025.
Get in touch with our news team by emailing us at webnews@metro.co.uk.
For more stories like this, check our news page.
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