Newcastle launches Inflation Protector Investment account

Newcastle Building Society is offering savers the opportunity to protect their savings against the effects of inflation with the launch of its new Inflation Protector account.

Newcastle promises to match any percentage change in the Retail Price Index (RPI) plus the addition of 2.25% gross/AER annually with a minimum investment of only £500.

For example, the last published change to RPI was 5% (September), so Newcastle will pay a rate of 2.25% above this. If the product had been available one year ago, using September's published change, the saver would have received 7.25% gross.

A great added feature differentiating this product from others assures that if there is negative inflation (or deflation) customers will still get a minimum return of 2.25% gross at the end of that annual period.

Any investment made before the start tracking date of 25 November 2008 will receive an early bird interest of 5.50% paid to the account on 25 November 2008.

The Inflation Protector account is available as either a Bond or an ISA and is ideal for customers who have not subscribed to an ISA this tax-year or those wishing to make investment above and beyond their ISA allowances.

Steve Urwin, Senior Marketing Executive, Newcastle Building Society, commented: "Any return made on an investment needs to be considered against inflation to determine its real value. We are providing customers with our new Inflation Protector account which offers security and peace of mind that their savings will have a greater purchasing power at the end of the term, whatever happens with future savings rates or the RPI."

For more information, visit newcastle.co.uk