With the new year just around the corner, reviewing finances may well be an activity on many people’s minds. 2020 has been a tough year for savers, with the Bank of England Base Rate having been held at 0.1 percent – a record low – since two successive cuts in March this year.
The bank launched its Digital Regular Saver this year.
It pays a variable interest rate of three percent AER/3.04 percent gross pa on balances up to £1,000.
Should the balance exceed this total, the amount over the threshold is subject earns interest at a rate of 0.01 percent.
Interest is calculated on a daily basis, and is paid into the account of the first business day of the month.
NatWest states this digital savings account is exclusively for current account customers, aged 18 and over.
This account is also only open to UK residents.
Savers can have instant access, enabling them to withdraw the money at any time.
There are limits to note within the rules, however.
It’s only possible to pay in a maximum of £50 into the account each calendar month.
“There’s no minimum deposit to open the account, however you’ll need to set up a standing order from your NatWest current account of between £1 and £50 each calendar month into the account,” the bank states.
Should a person wish to put extra money into the account after setting up the standing order, they can do so.
However, the combination of this additional deposit and the standing order cannot exceed the £50 per calendar month limit.
“There is no maximum balance limit, however, the higher interest rate will only apply to balances up to and including £1,000,” states the bank.
It’s only possible to have one Digital Regular Saver, and this must be in the customer’s name.
Royal Bank of Scotland, a sister bank to NatWest, also offers a Digital Regular Saver.
This account is currently paying the same variable interest rate on balances up to £1,000, as the NatWest version.