Newcastle bucks trend to reveal net growth in cash ISA balances

Newcastle Building Society is bucking the trend of reports that show building societies had a net withdrawal of £212 million from Cash ISAs in December 2008. The Newcastle has announced its cash ISA balances had increased not only in December, but by 42% over the last 12 months.

The Society has seen a significant increase in the number of savers investing money into its ISA products. One of the reasons cited for the increase has been down to not only the attractive rates, but the variation of products being made available.

Newcastle Building Society’s portfolio of cash ISAs has grown significantly over the last year with a range of products including the very competitive variable, fixed and structured ISA accounts being offered. Savers currently have the opportunity to make the most of their tax free savings with a variable rate of 3.00% Gross with Newcastle’s Reward ISA, or if a fix is preferred the Society’s Fixed Rate Options ISA (Issue 28) at 3.00% is also currently available.

The Newcastle scores big on loyalty too after 96% of maturing ISA balances continued to remain with the UK’s 10th largest Building Society, which is also the largest Building Society in the North East.

Steve Urwin, Senior Marketing Executive at Newcastle Building Society, commented: “Despite the tough market conditions, we have seen a net increase in the number of savers investing in the Newcastle’s range of cash ISA products over the last 12 months. This is down to the Society continuing to offer competitive rates and a range of products tailored to the needs of our customers.”

“The fact that we are not seeing customers take their money elsewhere is testament to the fact that, as a mutual building society, we provide a safe, secure and rewarding home for savings. Our Reward Saver ISA product is proving extremely popular, so much so we have extended availability via our branches across the North of England, Scotland as well as by post and internet.”

Reward Saver and Reward ISA:

Variable rate of 3% Gross/AER including bonus.
1.00% unconditional bonus payable for first 12 months of opening account
ISA transfers allowed (Reward ISA only)
Minimum/Maximum investment £500 - £1,000,000 (ISA Limits current and transfer)
Operated by post and branches
Available now. Very limited availability

Fixed Rate Options ISA

Fixed rate of 3% Gross/AER
ISA transfers allowed (Reward ISA only)
Minimum/Maximum investment £500 - £3,600
Operated by branch, telephone, post and online
Maturity Date 11th January 2010
Available now.

For more information, visit newcastle.co.uk