Martin Lewis provides advice on children’s savings accounts
RBS and sister bank NatWest are both offering customers this variable interest rate of three percent gross (3.04 percent AER per annum) via the Digital Regular Saver. This rate is available only on balances in the account up to £1,000.
There are rules with regards to this account.
For instance, savers will get the bank’s “highest interest rate” when they save between £1 and £50 via standard order each month.
It applies only to balances in the account up to a limit of £1,000.
The interest rate dramatically drops on any balance over £1,000.
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Above this threshold, the rate that can be earned in the account is 0.01 percent AER/gross (variable).
The interest is calculated on a daily basis, the bank explained.
It is paid into the account on the first business day of the month, and the saver should be able to see and access the interest in their account on the following day.
As the rate is variable, Royal Bank is able to change this rate.
“We’ll give you at least 14 days’ notice if the rates are going down and your balance is £100 or more,” the website states.
“Otherwise we’ll tell you before or shortly after the change.”
Money can be withdrawn from the account at any time, the bank confirms.
Should a person need to, it’s also possible to adjust the standing order (of between £1 and £50 per calendar month).
As of December 16, 2020, the bank said 30,000 of its customers had already opened a Digital Regular Saver.
To be eligible to open an account, the saver must be a UK resident who is aged 18 or older, and hold a Royal Bank of Scotland current account.
It is only possible to have one Digital Regular Saver and it must be in the current account holder’s name.
RBS is part of the NatWest Group, and sister bank NatWest also offers a regular savings account.
The NatWest Digital Regular Saver also pays three percent gross (3.04 percent AER pa) variable on balances up to £1,000.
The same rules apply in that this account is exclusively reserved for the bank’s current account customers.
Once again, they must be aged 18 or older, and a UK resident.
As of December 16 last year, 162,000 NatWest customers were benefitting from the account, the bank said.
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