You can’t beat this high-interest rate on cash savings. But there are a few catches.
Since it launched 18 months ago, Natwest’s monthly saver has paid the highest interest rates – but with a catch. The Digital Regular Saver is designed for those starting off their savings journey, and as such there’s quite a small monthly limit you can put away. Just £50.
But as rates begin to improve elsewhere, there’s been an increase in how much you can save. Though there are still a few catches.
There’s more you need to know, so here’s my quick review.
How much can you save in the Natwest or RBS Digital Regular Saver?
You can now save between £1 and £150 a month into the account. There’s no limit beyond that as unlike other regular savers accounts it won’t close after 12 months. However you’ll only be able to earn the top level of interest on the first £1,000.
That could mean you’ll want to save elsewhere once you reach that total, which will take six months at the full £150 a month and another at £100.
Another difference to normal regular savers is that you can take the money out whenever you want, not just when it matures. But taking £150 out doesn’t mean you can put extra back in. That £50 monthly deposit limit stays at £150 regardless.
The only way to add more than the £150 each month, and get to that £1,000 sooner, is to use a round-up function on your debit card. More on how this works here.
How much money can you earn?
The main rate increased slightly in spring 2022 to 3.3%. If you save the full £1,000 in seven months then the interest earned in the first year will be worth around £25.16.
You’ll then keep earning the interest on that money, and over the next full 12 months you will earn you £33 on that grand.
However any new deposits will earn far less. Between £1,001 and £5,000 you’ll get 0.3%. Above £5,000 and you’ll get 0.1%. These can easily be beaten elsewhere.
Also the interest rate is variable. So though it’s 3.3% now, that could change at any time.
Who can get this account?
You can only open one of these regular savers if you have a Natwest or RBS current account. There are free ones, or you can look at the Natwest or RBS Rewards account.
There’s also only one per person, which means you can’t get another, even as a joint account.
However the same account is offered by both Natwest and RBS, and you can open up an extra current account and digital regular saver at the other bank.
How to open an account
If you have an account you need to go to your online banking or app to open the saver. I did this via my app and it took just three minutes. There’s an “Apply” button on the bottom right, and the tap the savings option. It’s all self explanatory from there.
You need to set up a standing order of between £1 and £150 from your Natwest account, though you can cancel this once you reach £1,000.
Should you open a Natwest Digital Regular Saver?
If you already have a Natwest or RBS current account then absolutely, it’s worth it. It’s the best rate out there (for now). And if you can, put the full £150 in there to reach that £1,000 as soon as possible.
But what if you don’t have one? Well, that depends if there’s a bank switching offer running. At the time of writing, both banks offer £150 for switching over (you can only get the cash from one). Add that to the £36 a year via the Reward account and the initial interest, and you’re almost at £200.
When there’s no offer, well… most of the switching deals have been open to existing customers. So you could open the account now to get saving on the Digital Saver and hope you can still get the switching cash later on.
Of course, let’s not forget it’s a regular saver, so you’ll only be putting away up to £150 a month. If you have a larger lump sum it’s better to prioritise opening up one of the best paying savings accounts, like the Virgin Money M Plus current account and M Saver.