A market leading account with a 3% interest rate has been unveiled by NatWest. The account is designed to help those with little to no savings.
Customers will need to set up a standing order upon opening their digital regular saver account, and will be able to put up to £50 per month into it.
Interest is paid monthly, with balances up to £1000 receiving a 3% variable interest rate, and balances over £1000 receiving 0.01%.
NatWest said that the lockdown allowed over 400,000 customers to grow their savings to £100 or more for the very first time. By 2023, they are hoping to have aided an additional 2million customers to start saving.
The new account is available through the bank’s website or app, and is instant access, so customers can withdraw their money if they ever need cash.
Customers will need to have a current account with NatWest if they want to take advantage of the new savings account, but they can open both at the same time if they do not currently have one.
Savings expert at NatWest, Lewis Broadie, said: “During lockdown many of our customers started to save for the first time. We are introducing the new digital regular saver to help our customers start and maintain a long-term savings habit which will help them to become more financially secure.”
Finance expert at Moneyfacts.co.uk, Rachel Springall, said that the rate being offered by NatWest is market-leading for this kind of account. She said another account available to savers was the fixed-term regular saver from HSBC that allows people to save upto £3000 at a 2.75% interest rate. The rate is fixed for 12 months, but savers won’t be able to access their cash for a year.
Speaking on the NatWest account, Springall said: “It’s great to see such a competitive rate for savers looking to kickstart the savings habit and after the lockdown there may well be consumers who have some disposable cash spare to save.
“On the other end of the spectrum, there may be consumers who wish to start up a savings pot in light of the uncertainty surrounding the coronavirus pandemic. The gross interest rate of 3% would be limited on balances up to £1,000 and the maximum deposit is £30 per month, also as it is a variable rate it can change.
“All in all this account may attract savers who want to put aside a bit of cash each month but also have the option to dip into their savings if they so wish.”
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