Natwest provides its banking customers with a variety of options, depending on what they wish to do with their money. Banks are considered one of the safest places a person can place their money as cash placed into banks or building societies authorised by the Prudential Regulation Authority protect funds. The Financial Services Compensation Scheme protects funds of up to £85,000, an increase which occurred in 2017 to protect savers.
- Furlough fraud: Warning as new powers mean crackdown on lawbreakers
Natwest is one of the most popular options for Britons, however, there are various accounts which may be suited depending on a person’s needs.
The first option available is the Savings Builder, which the bank describes as perfect for regular savers with a balance under £10,000.
The account allows savers to grow their money by £50 or more each month, to earn up to 1.00 percent AER/Gross per year as a variable rate.
To provide insight into the account, Natwest states that if a person initially deposits £1,000, and then saves £50 every month, their balance after 12 months will stand at £1,613.32 – earning £13.32 in interest.
In order to be eligible, a person must be a current account customer aged 16 or over.
A second option is the Natwest Instant Saver account.
This offers flexible saving without the need to deposit regularly, and is a good option for those who do not wish to put money into the account all the time.
Natwest states customers aged 16 or over can apply online for the account in less than five minutes, and the starting amount is at a staggeringly low £1.
Universal Credit UK: Additional payments Britons may be able to claim [INSIGHT]
Furlough fraud: Warning as new powers mean crackdown on lawbreakers [ANALYSIS]
Credit cards: Best way to manage yours and avoid debt – expert [INTERVIEW]
Currently, the interest rate stands at 0.01 percent AER/Gross per year, but it is worth noting this is variable.
Money can be withdrawn at any time, and the bank does not need to be given notice.
A third choice for those looking to save their money is the Premium Saver.
This is for Britons who have balances over £25,000 and are looking for the best way to efficiently manage this money.
- Martin Lewis issues warning to savers to ‘check now’ on interest rates
If a person does not make any withdrawals in a month, they could stand to receive a bonus in the form of interest.
Those who have savings of between £25,000 and £49,999 will receive 0.10 percent in interest including a 0.09 percent bonus.
And those who leave their savings of £50,000 to £1,000,000 untouched stand to earn bonus interest of 0.34 percent.
Much like the other account options with Natwest, the money can be withdrawn at any time without notice, however, a saver would lose the bonus interest for that month if choosing to do so.
Those looking to fix their interest rate for one or two years should act quickly to apply for the Fixed Rate ISA.
This product is available until June 22, 2020 and freezes interest at a set rate for a specific amount of time.
Many people choose this option in order to help their money grow steadily, and Natwest states any interest earned will not be taxed up to £20,000 for the current tax year.
In times of uncertainty, many people are choosing ISAs or savings accounts to ensure their money is protected.
The Money Advice Service states it is important to set a savings goal, as well as considering rates with different banks in order to select which offer is best for a person’s financial circumstances.
It is also recommended that a person studies their financial situation to see whether they need to access their money, or if they can afford to tuck away the sum.
Source: Read Full Article