Natwest increases savings allowance on account offering 5% interest

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The interest of 5 percent/5.12 percent Gross/AER p.a. (variable) on the Digital Regular Saver is now available on balances right up to £5,000 – previously £1,000. Following the Bank of England base rate increase last week, a number of banks have increased the interest rate on their popular accounts.

Anything over £5,000, the interest drops to 0.50percent.

If someone put £150 in the account each month for 12 months, their total balance would be £1800.

However with the interest added, individuals will earn almost £50.

The total balance with interest would be £1,849.70

Britons can open a Digital Regular Saver if they’re a UK resident, aged 16 years or over and a NatWest current account holder.

Accounts can be managed on the mobile app, online, in branch or by telephone.

With Digital Regular Saver, customers can use Round Ups to accelerate their spending habits.

It should be noted that people can only pay up to £150 into the account each calendar month.

This includes their standing order and any extra money they put in.

Round Ups won’t count towards the monthly £150 limit.

Any amount over this limit may be automatically moved to one’s current account.

There’s no minimum deposit to open the account, however individuals will need to set up a standing order from their NatWest current account of between £1 and £150 each calendar month into the account.

There is no maximum balance limit, however, the higher interest rate will only apply to balances up to and including £5,000.

Account users can withdraw their money at any time.

Commenting on the rate, Kevin Mountford, savings expert and co-founder of Raisin told Express.co.uk: “It’s good to see that increasingly there are better rates coming from the high street banks.

“The NatWest regular saver isn’t the best on the market but it is competitive and will no doubt attract new deposits.

“It should also be noted that regular saver products help people to take a more disciplined approach to savings plus they allow savers to start with relatively small monthly contributions.”

Britons can set themselves a goal to work towards with their Savings Goal Tool.

Individuals can change their standing order whenever they need to, or top-up their monthly contribution if they haven’t already hit their £150 limit for the month.

Interest is calculated on a daily basis and paid into one’s account on the first business day of the month.

They’l be able to see and access the interest in their account on the following day.

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