While banks have been reflecting the Bank of England Base Rate rises across a number of their services, regular saving accounts have been offering some of the highest returns seen in decades. NatWest customers have the opportunity to snap up one of the more competitive rates for their savings on the market with the Digital Regular Saver.
Regular savings accounts may be an option for those looking to start building up a savings pot. They tend to offer the highest interest rates as banks are likely to get continued investment, and people generally have to pay into these accounts monthly.
But, these accounts can impose certain requirements and stricter restrictions on customers, such as minimal withdrawals, which can reduce their popularity.
However, the Natwest Digital Regular Saver appears to currently be one of the more liberal accounts of this kind.
The NatWest Digital Regular Saver is offering customers a competitive 5.12 percent Annual Equivalent Rate (AER).
This saver is only available to NatWest current account holders and customers must be aged over 16 and a resident of the UK.
The account operates with a tiered interest rate. The 5.12 percent AER is awarded to savings between £1 and £5,000, after which a 0.5 percent is awarded to figures over £5,000.
There is no minimum deposit required to open the account and it allows people to save up to £150 each calendar month. This includes the standing order and any extra money invested.
Any amount invested over the £150 limit may be automatically moved to the person’s current account, and if the amount invested continuously exceeds the limit, 60 days’ notice will be given to close the account.
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Unlimited withdrawals are also permitted without penalty and interest is calculated daily and awarded to the balance on the first business day of the month.
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.”
While this account offering has remained competitive for a number of consecutive months, as Mr Mountford commented, this isn’t the highest rate on the market for regular savers.
The account allows up to £200 to be deposited per calendar month and withdrawals are not permitted until October 1, 2023. If the account is closed before this date, it will not qualify for the 5.5 percent AER and instead, will earn interest calculated at 0.2 percent AER.
The fixed term starts on the date the account is opened and interest is calculated on a daily basis on the balance in the account and paid on maturity. It must also be noted, as this is a limited-issue bond, it can be withdrawn by the Society without notice at any time.
The Club Lloyds Monthly Saver requires a £25 deposit to open and the term runs for 12 months, which means up to £4,800 can be invested over the course of the year. The account is available to Club Lloyds customers and unlimited withdrawals are permitted without penalty.
The interest rate is fixed and will be paid on the anniversary of the account opening, and deposits between £25 and £400 must be invested before the 25th of every month.