Lewis Broadie, a savings expert at NatWest, said: “During lockdown many of our customers started to save for the first time. There are a number of different regular savings accounts out there at the moment. People need to have a NatWest current account if they want to open the new savings account, but can open both at the same time if they do not have one. NatWest said that in the months following the initial Covid-19 lockdown, more than 400,000 customers grew their savings to £100 or more for the first time. It's a 'losings' account, not a savings account. The account has been designed to help customers build a buffer that could be useful as households deal with economic uncertainty. See today's front and back pages, download the newspaper, NatWest has unveiled a new account with a market-leading 3% interest rate designed to help customers with little or no savings. There are limits to note within the rules, however. You have £1 in a savings account at 2% interest... By next year, it will have grown to £1.02. NatWest states this digital savings account is exclusively for current account customers, aged 18 and over. Should a person wish to put extra money into the account after setting up the standing order, they can do so. 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Rachel Springall, a finance expert at Moneyfacts.co.uk, said NatWest’s rate was market-leading for this type of deal. order back issues and use the historic Daily Express It's only possible to pay in a maximum of £50 into the account each calendar month. Should the balance exceed this total, the amount over the threshold is subject earns interest at a rate of 0.01 percent. It pays a variable interest rate of three percent AER/3.04 percent gross pa on balances up to £1,000. It's only possible to have one Digital Regular Saver, and this must be in the customer's name. In the past, these accounts have offered interest rates as high as 5% but these disappeared last year. While regular savings accounts can pay higher rates of interest, the problem with them is that it takes time to build up the amount of money you have in there. to take account of Bank of England base rate changes or changes in the rates paid by other banks. “All in all this account may attract savers who want to put aside a bit of cash each month but also have the option to dip into their savings if they so wish.”. The gross interest rate of 3% would be limited on balances up to £1,000 and the maximum deposit is £30 per month, also as it is a variable rate it can change. There are a wealth of factors which can impact how a person saves their money, with a whole range of savings options out there. It is available through the bank’s app or website. The bank is aiming to help an additional 2 million customers to start saving by 2023. With the new year just around the corner, reviewing finances may well be an activity on many people's minds. "There is no maximum balance limit, however, the higher interest rate will only apply to balances up to and including £1,000," states the bank. Savers with NS&I’s popular direct saver account will receive a cut in rates from 1% to just 0.15%, while the return on income bonds will plummet from 1.15% to 0.01%. Interest rates may also vary depending on deposit term. If it is going up, we’ll inform you before the change or shortly afterwards. For some, setting aside money each month may suit their circumstances. Interest is paid monthly, with the 3% variable rate paid on balances of up to £1,000. Yes, the interest rate is variable. READ MORE: How to save more than £2,500 by the end of 2021. Customers can … NATWEST and Royal Bank of Scotland (RBS) customers can currently access a 3.04 percent gross pa interest rate via a linked savings account. Interest is calculated on a daily basis, and is paid into the account of the first business day of the month. Savers can have instant access, enabling them to withdraw the money at any time. She said other accounts on the market included a fixed-term regular saver account from HSBC that pays 2.75%. NatWest's business savings accounts let you earn interest and have instant access to your funds for bills, equipment or business expansion. You must have a NatWest business bank account to use our mobile app. This account is also only open to UK residents. “On the other end of the spectrum, there may be consumers who wish to start up a savings pot in light of the uncertainty surrounding the coronavirus pandemic. NatWest Community account is available to account holders over 18 who have the right to be self employed in the UK. NatWest pays the best rate of … The new account is instant access, so customers can dip into it if they need to get their hands on the cash. Express. If your balance grows by £50+ a month (regular savings condition is met): 1.50% for balances between £1 and £5,000 1.50% for balances between £5,001 and £10,000 0.20% for balances over £10,000 . Put the lump sum in the top-paying easy-access account NatWest said that in the months following the initial Covid-19 lockdown, more than 400,000 customers grew their savings to £100 or more for the first time. NatWest has unveiled a new account with a market-leading 3% interest rate designed to help customers with little or no savings. Upon checking, their website states that you can earn high interest with a Savings Builder account. The bank launched its Digital Regular Saver this year. Paltry interest rates leave savers struggling to beat inflation, despite saving record sums The average account balance is now 11pc higher than pre-pandemic levels By Adam Williams 23 Jun 2020, 5:00am However, the combination of this additional deposit and the standing order cannot exceed the £50 per calendar month limit. The rate may increase or decrease for any of the reasons set out in Term 10.3 of the Personal Banking Account Terms and Fees to account for the Bank of England's base rate changes or changes in the rates paid by other banks. You can pay money in by transfer from a current account or savings account in your name held with us or held with another bank (Online, by telephone or on the mobile app). There are many types of savings account with NatWest. Your organisation’s turnover must be under £2m. This includes linked savings accounts - something which NatWest is currently offering. Springall said of the NatWest account: “It’s great to see such a competitive rate for savers looking to kickstart the savings habit and after the lockdown there may well be consumers who have some disposable cash spare to save. Each month your balance must grow by at least £50 to earn interest. Please see our Privacy Notice for details of your data protection rights. Interest is calculated daily from the date of your deposit and will be paid on the maturity date. Home of the Daily and Sunday Express. newspaper archive. Up to £50 a month can be put into account designed to help people with little or no savings, Last modified on Tue 22 Sep 2020 15.45 EDT. We are introducing the new digital regular saver to help our customers start and maintain a long-term savings habit which will help them to become more financially secure.”. We also offer Fixed Term Multi-Currency Deposits in a variety of major currencies including US Dollars and Euro. Customers can put between £1 to £50 per month into the digital regular saver account and will need to set up a standing order at account opening. Of course, sometimes prices drop – as happened in 2009 – and you get negative inflation, known as deflation. 2020 has been a tough year for savers, with the Bank of England Base Rate having been held at 0.1 percent - a record low - since two successive cuts in March this year. No minimum deposit is required to open the account; and there is no maximum balance limit. The account allows people to save up to £3,000 at a 2.75% interest rate that is fixed for 12 months, but with this account savers will need to be prepared to keep their money in it for a year. We will use your email address only for sending you newsletters. Yet if you have a lump sum of cash, and you want to maximise its earnings, you can still take advantage. It may be changed for any of the reasons set out in Term 9.2 of the Savings Account Terms (PDF, 281 KB), e.g. NatWest is used by millions of people each year to manage their money, particularly in savings accounts. If the rate is going down we’ll give you at least 60 days’ notice. The above interest rates are an indication only, please call us or visit your local branch for the latest rates. The best regular savings accounts pay a higher interest rate than the current rate of inflation, but to access them you'll need to have a current account with the same provider. This account is currently paying the same variable interest rate on balances up to £1,000, as the NatWest version. "There's no minimum deposit to open the account, however you'll need to set up a standing order from your NatWest current account of between £1 and £50 each calendar month into the account," the bank states. The launch provides some better news for savers, after NS&I announced on Monday it would slash interest rates in November and cut the Premium Bonds prize fund a month later.