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NatWest has announced that it will be launching a new savings account on September 23 with an interest rate of three percent. This will likely be relieving to hear for many savers who are struggling to find decent rates on the market.
This new savings account is designed to help customers with little or no savings develop a savings habit and unlike other regular savings accounts does not expire after a year.
The account is also flexible, allowing for withdrawals to be made with no need to close the account.
Customers will be able to save between £1 and £50 a month and will need to set up a standing order at account opening.
The interest will be paid monthly with the top rate of three percent interest paid on balances of up to £1,000,
NatWest detailed that in the months following the initial coronavirus lockdown, over 400,000 savers grew their savings to £100 or more for the first time.
On this, the bank aims to help an additional two million customers to start saving by 2012 and increase financial capability.
Lewis Broadle, a Savings Expert at NatWest, provided the following comments with the announcement: “During lockdown many of our customers started to save for the first time.
“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.”
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In order to apply for this account, savers must also hold a current account with NatWest.
The interest rate on balances between £1 and £1,000 is three percent Gross p.a. (variable) and 3.04 percent AER p.a. (variable).
Balances over £1,000 will see interest of 0.01 percent for both gross and AER.
The interest will be calculated daily and paid into the account on the first business day of the month.
NatWest provided calculations on what interest could be earned on different deposit amounts.
If £50 is deposited every month by standing order the balance will be £609.88 after 12 months, with £9.88 of that being earned interest.
If £10 is deposited monthly for 12 months, the balance will be £121.98, with £1.98 interest being earned.
It should be noted that NatWest may move the rate up or down, with reasons such as Bank of England changes being likely causes.
Savers can open a Digital Regular Saver account if they’re:
- A UK resident, aged 18 years or over and a NatWest current account holder.
- Opening the account online or through the mobile app.
- Managing the account on a mobile app, online, in branch or by telephone.
- Setting up a regular standing order when they open the account, paying any amount between £1 and £50 each month into the account.
- Paying money in by transfer from a current account or savings account in the holder’s name held with NatWest or held with another bank (Online, by telephone or on the mobile app).
Full details on the new account can be found on NatWest’s website.
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