Spotlight: Newcastle Building Society's Reward ISAs

With interest rates plummeting, it's worth keeping an eye out for new savings account launches. The best rates will tend to be on limited issue, and will come and go in a matter of days. Like Newcastle Building Society's new Reward Saver and Reward ISA accounts, launched this week. They're paying a rate of 4.5 per cent, reducing to 3.5 per cent after the first 12 months – which looks good compared to the Bank of England rate of 2 per cent.

The accounts can be opened either as a bond or an ISA, and ISA transfers are accepted. The minimum investment is £500 and the maximum is £1m – although obviously ISA limits apply for new accounts. Newcastle says there is a very limited amount of capacity available for these new accounts, so it's worth acting now.

Only three months ago, 4.5 per cent was one of the worst savings rates on offer. But with the Bank of England rate expected to fall even further, it may not be long before even 4.5 per cent savings accounts are a thing of the past.