Bank of England

A MAJOR building society is set to slash interest rates on 37 of its personal savings accounts within days.

Newcastle Building Society is dropping rates on dozens of variable rate savings accounts from June 5.

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It comes after the Bank of England (BoE) cut its base rate from 4.5% to 4.25% earlier this month.

The base rate is the rate charged by the BoE to smaller high street banks on loans, with any fall usually mirrored in savings rates.

Newcastle Building Society is reducing rates on the 37 personal savings accounts by 0.25 percentage points.

The Double Access Saver/ISA (Issue 4) will drop from 4.05% to 3.80%, for customers eligible for a bonus interest rate.

Meanwhile, the Newcastle Cash Lifetime ISA (Issue 3) will fall from 2.70% to 2.45%.

The Newcastle Junior Cash ISA will be cut from 3.75% to 3.50% and the Regular Saver Plus from 2.50% to 2.25% for anyone receiving the bonus interest rate.

Customers with fixed-rate savings accounts won’t see interest rates fall from June 5.

Interest rates on two variable rate savings accounts – the Loyalty Saver (Issue 1) and Quadruple Access Saver/ISA (Issue 1) – will also not change as they have only been available to customers since April 24.

You can view the table above to find out how the interest rate on your savings account has changed.

Or, you can visit www.newcastle.co.uk/savings/manage-your-savings-account/interest-rates and click on “Current and Closed Issue Variable Savings Interest Rates”.

The Sun asked Newcastle Building Society to comment.

MAJOR BANKS CUTTING RATES

A host of banks are reducing interest rates on savings accounts as the BoE continues to cut its base rate.

HSBC is cutting rates on eight of its savings accounts from June 3, and joins NatWest and Nationwide who are both doing the same.

Nationwide is cutting interest rates on over 60 savings accounts from June 1 including a number of ISAs and easy access accounts.

NatWest is also cutting rates on a number of accounts from the end of this month.

It comes after the BoE cut its base rate from 4.50% to 4.25% on May 8.

The central bank raises its base rate to discourage people from spending and encourage them to save, which in turn is designed to make inflation fall.

It lowers its base rate when inflation is under control, meaning people are encouraged to spend and pump money into the economy.

A lower base rate signals good news for those with mortgages who see the interest rates charged on them fall.

However, it’s usually bad news for those with savings accounts as banks slash interest rates.

If you’ve got a savings account with an interest rate set to drop, it might be worth shopping around for a better deal now.

Check out comparison sites like moneysavingexpert.com and moneyfactscompare.co.uk to browse the best out there.

According to Moneyfacts, Chip is offering the best rate on an easy access savings account, with a rate of 4.77%.

Meanwhile, the best easy access cash ISA is also with Chip and offering a rate of 4.99%.

Always look beyond just the headline interest rate on any savings account though.

Some offer additional perks which can make them more cost-effective and suited to you, based on your circumstances.

For example, some offer you access to free TV subscriptions or cheaper or free cinema tickets.

Different types of accounts pay out interest at different times too while others will offer a bonus interest rate which falls after a set period.

Some savings accounts penalise you for making withdrawals over a certain limit.

Meanwhile, ISAs can be effective for saving cash as any interest earned on them is tax-free.

Read more below about the different types of savings accounts and what they offer.

Do you have a money problem that needs sorting? Get in touch by emailing [email protected].

Plus, you can join our Sun Money Chats and Tips Facebook group to share your tips and stories

A BELOVED department chain is preparing to shut its final store this month as it launches a “Rachel Reeves closing down sale.”

The famous shop will be shuttering forever after serving customers on the high street for 140 years.

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Beales in the Dolphin Centre in Poole will close on May 31 and is slashing the price of stock by 80 per cent in the meantime.

The historic chain was founded in Bournemouth in 1881 and offers a range of iconic products, including clothing, home goods, and more.

This particular Poole Beales branch was the last one standing when the company collapsed into administration in January 2020, leading to the closure of its 22 other stores.

Despite the stores resilience, the brutal budget introduced last year saw the hike of National Insurance which has forced countless shops to close.

To mark the occasions, the store’s Facebook page is advertising a “Rachel Reeves‘ Closing Down Sale,” featuring discounts of up to 80% and a caption cheekily thanking the Chancellor for “the help.”

It wrote in the caption: “Our closing sale is almost over (cheers for the help, Chancellor) – and we’ve just dropped hundreds of lines to 80% OFF or more!

“Grab a bargain before we vanish into the budget black hole. #FinalSale #80Off #LastChance #WhenItsGoneItsGone.”

Despite weathering the storm for the past five years, it seems the Chancellor’s latest Budget changes have delivered the final blow to the struggling chain.

Beales chief executive Tony Brown previously told The Telegraph the business had become “unviable” following the Chancellor’s announcement of increases to the minimum wage and national insurance contributions in the October Budget.

Announcing the closure, Mr Brown said: “This, combined with the risks and uncertainty of further tax increases in the coming years, has left us with no alternative.

“We have been working with the Dolphin Centre, who have been supportive, along with our investors to ensure an orderly exit.

“Our team has been informed, as have our suppliers.

“We will ensure the exit is managed and no one will be left with a financial loss.”

Shoppers were left heartbroken by the news of the store’s impending closure, with one commenting on the latest post: “I’ve loved shopping here over the years.”

Another wrote: “Sadly this is happening to many shops.”

Like many businesses, Beales now faces higher employer national insurance contributions, which have risen from 13.8% to 15%.

Additionally, the threshold at which these contributions must be paid has been lowered from £9,100 to £5,000.

These changes to the tax system were confirmed by the Chancellor in the Autumn Budget last October and came into effect on 1 April.

At the same time, the national minimum wage saw a notable increase, rising to £12.21 per hour. For workers aged 18-20, the minimum wage increased by £1.40 to £10 per hour.

Founded in 1881, Beales once boasted a proud portfolio of 41 department stores in market towns across the UK, offering everything from furniture and fashion to toys and cosmetics.

The retailer’s decline has been gradual but unrelenting.

Its Southport store was shuttered last September, just three years after the site had reopened.

With the closure of the Poole branch, the last remaining link to the Beales name, a once-iconic fixture of the British high street, will vanish forever.

DEATH OF THE HIGH STREET

Retailers have been feeling the squeeze since the pandemic, while shoppers are cutting back on spending due to the soaring cost of living crisis.

High energy costs and a move to shopping online after the pandemic are also taking a toll, and many high street shops have struggled to keep going.

However, additional costs have added further pain to an already struggling sector.

The British Retail Consortium has predicted that the Treasury’s hike to employer NICs from April will cost the retail sector £2.3billion.

At the same time, the minimum wage will rise to £12.21 an hour from April, and the minimum wage for people aged 18-20 will rise to £10 an hour, an increase of £1.40.

Experts have said small high street shops could face a particularly challenging 2025 because of Budget tax and wage changes.

Professor Bamfield has warned of a bleak outlook for 2025, predicting that as many as 202,000 jobs could be lost in the sector.

“By increasing both the costs of running stores and the costs on each consumer’s household it is highly likely that we will see retail job losses eclipse the height of the pandemic in 2020.”