NatWest is launching two new savings products, a Savings Builder and a Premium Saver account.
Savings Builder pays a bonus interest rate of 1.50% Annual Equivalent Rate (AER) every month a customer increases their savings by £100 (on balances up to £5,000, different interest rates apply above this amount). Unlike competitor accounts, Savings Builder offers full flexibility allowing withdrawals and doesn’t have a set limited time frame for when accounts will mature and close.
Premium Saver rewards customers with 1.00% AER every month they do not withdraw (on balances of £50,000 – £1m, different interest rates apply outside of this).
Customers can open the accounts in branch, online or by telephone and can access their account via the same channel or by using the mobile banking app.
The rates apply to both new and existing customers, as part of NatWest’s strategy to not offer teaser rates that can cause customers to think they will receive higher rates on an on-going basis.
Moray McDonald, Head of Products at NatWest said:
“These products have been designed to help our customers achieve their savings goals by rewarding people for getting into great savings habits and helping those who have already saved significant sums with us make the most from their money.”
Savings Builder is an instant access account and to open one you must be 16 years or over. To earn the bonus interest rate in each monthly bonus period, customer’s balance must grow by at least £100. A monthly bonus period runs from close of business on the second-last business day of one month, to close of business on the second-last business day of the following month. Customers may have one sole and one joint account. Account can be opened with £1. Interest is paid on a stepped basis which means customers earn a different rate on each portion of balance within the tiers. For example, if a customer saves £100 a month and has £12,000 in their account, they will receive 1.5% AER/Gross p.a. on the first £5000, 1% AER/Gross p.a. on the next £5000 and 0.2% AER/Gross p.a. on the final £2000.
AER/Gross p.a. (variable)
Balance grows by less than £100 a month: bonus condition is not met
Balance grows by at least £100 a month: bonus condition is met
1.50% (includes 1.40% bonus)
1.00% (includes 0.90% bonus)
0.20% (includes 0.10% bonus)
Account holders must be 16 or over. No minimum deposit required to open the account and no maximum balance limit. Customers may have one sole and one joint account. To earn the bonus rate of interest in each monthly bonus period the account balance must be between £25,000 – £1,000,000 and account holder must not make any withdrawals. Interest is paid on a tiered basis which means customers earn one rate on the entire account balance.
AER/Gross p.a. (variable)
One or more withdrawals made in month: bonus condition is not met
No withdrawals made in month: bonus condition is met