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You can’t beat this high-interest rate on cash savings. But there are a few catches.

In the same week that NS&I announced huge interest rate cuts, Natwest has introduced a market-leading account offering a huge 3%.

But you can’t move all your savings over. 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.

So though the rate is high, you’re actually only looking at just under a tenner in interest in a year. But, that’s £10 more than you’d get in an account with no interest.

There’s more you need to know, so here’s my quick review.

How much can you save in the Natwest Digital Regular Saver?

You can save between £1 and £50 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 interest on the first £1,000.

That could mean you’ll want to save elsewhere when you reach that total, which will take 20 months at the full £50 a month.

Another difference to normal regular savers is that you can take the money out whenever you want, not just when it matures. But taking £50 out doesn’t mean you can put extra back in. That £50 monthly deposit limit stays at £50 regardless.

How much money can you earn?

If you save the full £600 over the next year the interest earned will be worth £9.88. If you keep saving and reach the full £1,000 you’ll earn £26.30 after one year and eight months.

You’ll then keep earning the interest on that money, but any new deposits will earn just 0.01%.

Also the interest rate is variable. So though it’s 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 current account. There are free ones, or you can look at the Natwest Rewards account.

There’s also only one per person, which means you can’t get another, even as a joint account.

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 £50 from your Natwest account.

Should you open a Natwest Digital Regular Saver?

If you already have a Natwest account then absolutely, it’s worth it – even if we are just talking about a tenner in the first year.

But I wouldn’t go out of my way to open a Natwest account to get this perk. Though they pay a slightly lower rate of 2.75%, the regular savers at First Direct, HSBC and M&S Bank allow larger monthly deposits and you’re guaranteed the rate for one year.

And if you already have a stash of cash saved up you should check out the Nationwide or Virgin current accounts paying 2% on between £1,000 and £1,500. Here’s more on all the latest savings offers.

Plus, I’d expect Natwest to introduce a switching bonus of £100 at some point, following a similar offer from sister bank RBS. Though existing customers have previously been able to switch in, it’s worth holding fire for now.