NatWest offers Britons 3.04% interest rate – check your eligibility to save

NatWest explain how they are helping during the pandemic

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NatWest’s Digital Regular Saver continues to lead the pack in terms of account options which are on the market to savers at present. The popular high street bank has a number of offerings, but this one is especially popular. Described as a “go-to account”, the Digital Regular Saver is designed to help Britons in building up their savings habit. This is a task many people will wish to embark upon, particularly given the financial insecurity of the pandemic. For those who are hopeful to kick off their savings habit, the Digital Regular Saver offering could be a perfect solution. The bank states over half a million customers are already saving in this way, encouraging others to join.

With this account, individuals will be able to open it up and then set up a standing order. Here, they will be able to regularly pay in between £1 and £50 each month to continuously boost their savings for the length of the term.

But it is worth noting this is not an inflexible arrangement, and Britons will be able to adjust their standing order or top up their total monthly contributions as and when they wish. However, the maximum £50 per month limit should not be exceeded by savers.

Ultimately, it is hoped this account helps to provide individuals with the tools they need to reach their savings goals. In this vein, NatWest is offering a Savings Goal Tool through its mobile app to help those who need an additional push.

What is most attractive about this account, however, is the solid interest rate available to Britons. Currently set at 3.04 percent AER it tops many lists for the best interest rates on offer at present. But it is variable, and thus subject to change if the bank decides.

This may be due to a variety of factors, but is usually influenced by the Bank of England’s base rate. NatWest will give Britons at least 14 days’ notice if the rates are going down and their balance is £100 or more. 

The interest rate is available on the first £1,000 a person chooses to save into this account. For sums deposited above this amount, the interest rate is set at 0.01 percent. Interest is calculated on a daily basis, and then paid into the account on the first business day of the month.

As with any savings account, though, there are certain eligibility criteria it will be important to bear in mind. Doing so will avoid savers being disappointed about the accounts they are able to access if they are hoping to boost their savings.

Individuals will be able to open a Digital Regular Saver, firstly if they are a resident of the UK, but they must also be aged 18 years and over to be eligible. Finally, they must also be a NatWest current account holder.

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The account can be opened in a number of ways in a process designed to be simple and easy for users. This can be achieved either online or through NatWest’s mobile app.

But there are also different ways for individuals to be able to manage their account once it has opened. The mobile app can be popular, but online banking is also growing in use. Of course, some may opt for more traditional processes, choosing to go into branch or manage the account via the telephone.

There is currently no minimum deposit which is needed to open an account of this kind, however, Britons must set up a standing order from their NatWest current account each calendar month in order for the account to be valid.

People will be required to provide NatWest with certain information when it is time to open a Digital Regular Saver. Most importantly, this will include an email address and mobile number, not only so the account can be opened, but also so important documents can be sent over.

While Britons should be depositing a sum into this account every month, they also have the opportunity to withdraw their money at any time they so wish. This can be achieved by moving the amount a person wants to their current account held with NatWest – via mobile, online, in branch or telephone. 

Individuals who close their account with NatWest will not earn interest for the month of closure. They will also only be able to withdraw money from their account in branch. Evidently, both of these points are important to consider for actions Britons may wish to take later down the line.

When it comes to the standing order, savers will not have to keep this in place once they reach the £1,000 limit. But NatWest has encouraged considering this as it can “help keep you in the savings habit”. Britons will still receive the higher interest rate on a balance up to £1,000.

NatWest, however, is not the only provider which is offering a tempting interest rate to help wearied savers who may be brow-beaten by the options available to them within the last year. Its sister bank, RBS, is also offering a Digital Regular Saver with the same interest rate.

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Furthermore, there are also other options which are available to savers, of course, dependent on their eligibility. The top open-to-all account is offered by Coventry Building Society which currently has an interest rate of 1.05 percent.

In addition, for customers in the vicinity, there is an offering from West Brom which is set at two percent. Which savings account person opts for, though, is of course dependent on a wide range of factors.

Rachel Springall, Finance Expert at Moneyfacts, recently said: “There has been a notable uplift to market-leading savings rates on offer since last month across various types of accounts and terms, which is positive to see. However, inflation is eating its way into savers’ hard-earned cash and with the expectation for it to rise, its eroding power will not be easing any time soon. Savers would be wise to not let this deter them from finding a more attractive rate, as deals are improving, and they may miss out on a market-leading rate if they become apathetic.

“To mitigate the impact of inflation, switching accounts for a more attractive return is essential and considering the more unfamiliar brands would be wise as they continue to inject competition across the savings spectrum. Signing up to rate alerts and newsletters to keep abreast of the changing top rate tables is a good idea, as savers may need to act swiftly to take advantage.”

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