NatWest bank offers a savings account with an interest rate of 3.25% | Personal finance | Finance
It comes as the UK’s inflation rate hit a 40-year high of 9.4% and is expected to reach 11% by the end of the year. In response, the Bank of England raised the country’s base rate to 1.25% to help financial institutions help their customers during the cost of living crisis. One of the banks doing this is NatWest which offers a rate of 3.25% with its latest savings offer.
Using the bank’s Digital Regular Saver, customers can earn 3.25% interest on their first £1,000.
Approximately 0.30% is earned on balances of £1,001 to £5,000 and 0.10% on any amount over £5,000 in your account.
To open this account, savers must be at least 16 years old and resident in the UK.
The account can be opened online or via our mobile app and savers will be able to manage their finances through the same means or by visiting a local branch.
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Customers can only deposit up to £150 into the NatWest savings account each calendar month.
This includes any standing orders set up and any additional money placed in the account.
It should be noted that there is no minimum deposit requirement to open NatWest’s Digital Regular Saver.
On its website, NatWest stressed that it has the right to change interest rates again depending on developments in the broader economy.
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Responding to this concern, the bank said, “Yes, we can change the rate up or down.
“There are several reasons for this, such as a change in the Bank of England base rate.
“You can find a full list of reasons for an interest rate change in section 9.2 of the Savings Account Terms.
“We will give you at least 14 days notice if rates go down and your balance is £100 or more. If not, we will tell you before or shortly after the change.
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Michelle Stevens, banking expert at finder.com, explained how inflation has impacted people’s savings lately.
Ms Stevens explained: ‘The fact that savings accounts are currently losing people a lot of money in real terms is another worrying result of the cost of living crisis.
“They remain a prudent choice for many consumers given the security they offer and the fact that they still earn you interest, but they may not be a sustainable option for many if inflation does not start. not to drop soon.
“However, a bear market – which many predict will worsen – also does not inspire confidence in choices such as investing or cryptocurrency. also comes with the possibility of losing some or all of your money.
In light of rising inflation, she also shared how people can get better returns on their savings despite the cost of living crisis.
The financial expert added: “One option to protect your money, for those under 40, is to get an ISA.
“A lifetime ISA offers a guaranteed return of 25% (up to £1,000 a year), but it should only be used to buy a first property or be withdrawn after reaching 60, otherwise you will lose the interest on the account.
“Also, investing more in your retirement fund could be another option, as you get employer contributions and tax breaks from the government.”