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The variable interest rate is guaranteed to be no less than 0.5 of a percentage point above the base rate on balances of £3000 and over until 18 June 2009 and rates on all balances will not fall below the base rate until 18 June 2010.

The variable interest rate is guaranteed to be no less than 0.5 of a percentage point above the base rate on balances of £3000 and over until 18 June 2009 and rates on all balances will not fall below the base rate until 18 June 2010.

The extension of the guarantees takes place with immediate effect and is available to both new and existing customers. The rates offered are 5.5 per cent gross for balances up to £3000 and 6 per cent for balances of more than £3000.

The Isa Plus offers unlimited transfers and withdrawals, for a minimum investment of £1 and is available through branches, by post, phone or online.

Stuart Fern, head of product development and third party marketing for Newcastle, said: “This is a great product for our customers, because they are getting an exceptional rate for an instant access product.”

Extending the guarantees was also viewed as a positive step by Kate Philip, of Edinburgh IFA Independent Women. She said: “Anything that offers a guarantee in the current economic climate can only be a good thing. It is a good deal for customers, to know that they have a rate which is guaranteed as far as 2010.”