NatWest offers 5% interest rate through ‘go-to’ savings account

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With the Bank of England increasing its base rate, slowly but surely, high street providers are passing on the benefits to their customers. One such example of this is NatWest’s Digital Regular Saver, described by the bank as a “go-to” account for building a savings habit. 

The account offers a 5.12 percent AER variable rate per annum – working out as 5.00 percent gross.

This interest rate is available on the first £1,000 a person saves into their account.

After this, up to £5,000, there is 1.00 percent interest available, but exceeding £5,000, the interest will drop to 0.50 percent.

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

NatWest describes the account as perfect for those who want to “kick off a savings habit”.

Individuals will be able to open the account and set up a monthly standing order between £1 and £150 each month.

Savers will be able to set a goal to work towards if they so wish with a dedicated tool from the bank.

The standing order is also flexible, meaning savers can change this whenever they need to.

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It means people can top-up their monthly contribution if they have not already hit their £150 limit for the month.

The £150 limit is a strict one, and any amount over this limit may be automatically moved to one’s current account.

NatWest added: “If you repeatedly try to pay more than £150 each month into the account, you will be given 60 days’ notice to close the account.”

There is no maximum balance limit on this account, meaning people can save whatever they like into it.

However, the higher interest rate, as aforementioned, only applies to balances up to and including £1,000.

There are eligibility criteria to bear in mind for those who are interested in this account.

Firstly, individuals must be both UK residents as well as 16 years old or over.

They must already be a NatWest current account holder in order to apply. 

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The account can be opened online or through NatWest’s mobile app, and managed in the same way, although people may choose to visit a branch or conduct their banking via telephone too.

Savers will be able to withdraw their money from the account at any time, by moving the amount they want to their NatWest current account.

NatWest stated: “If you close or switch your current account with us in future, you will only be able to withdraw money from your account in branch.”

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