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  • FIRST POST
    • KTF
    • By KTF 8th Nov 16, 2:14 PM
    • 4,531Posts
    • 1,850Thanks
    KTF
    Natwest Savings Builder
    • #1
    • 8th Nov 16, 2:14 PM
    Natwest Savings Builder 8th Nov 16 at 2:14 PM
    I haven't seen this posted here yet but Natwest have an account that pays tiered interest if you increase the balance by £100 a month:

    http://personal.natwest.com/personal/savings/savings-builder.html

    Balance / Balance grows by less than £100 a month / Balance grows by at least £100 a month
    £1 - £5,000 / 0.10% / 1.50% (includes 1.40% bonus)
    £5,000 - £10,000 / 0.10% / 1.00% (includes 0.90% bonus)
    Over £10,000 / 0.10% / 0.20% (includes 0.10% bonus)

    May be of interest to people who have a small balance in Santander 123 accounts and still have money to drip feed into the account each month.
Page 1
    • Pincher
    • By Pincher 8th Nov 16, 2:42 PM
    • 6,516 Posts
    • 2,491 Thanks
    Pincher
    • #2
    • 8th Nov 16, 2:42 PM
    • #2
    • 8th Nov 16, 2:42 PM
    I think this is supposed to work by celebrities on social media.
    Like:

    Paris Hilton:

    "Opened a NatWest Savings thing, so fun, X X X poodlekins."

    1.5%? It does not compute.
    • PeacefulWaters
    • By PeacefulWaters 8th Nov 16, 3:57 PM
    • 6,843 Posts
    • 8,431 Thanks
    PeacefulWaters
    • #3
    • 8th Nov 16, 3:57 PM
    • #3
    • 8th Nov 16, 3:57 PM
    Bizarrely complex, don't you think?
    • KTF
    • By KTF 8th Nov 16, 3:58 PM
    • 4,531 Posts
    • 1,850 Thanks
    KTF
    • #4
    • 8th Nov 16, 3:58 PM
    • #4
    • 8th Nov 16, 3:58 PM
    Yes. Plenty of trapdoors for you to fall through so they don't pay the bonus interest.
    • Rollinghome
    • By Rollinghome 9th Nov 16, 8:43 PM
    • 2,091 Posts
    • 2,276 Thanks
    Rollinghome
    • #5
    • 9th Nov 16, 8:43 PM
    • #5
    • 9th Nov 16, 8:43 PM
    Complicated enough to be the work of the card who brought us their E saver a few years back. As I remember paid 2% bonus on 1% basic but the bonus didn't start until a month after the end of the month in which the account was opened - so no bonus would be earned for up to 8 weeks after opening. As it only lasted a year it cunningly reduced the headline rate.

    So cunning that they didn't understand it themselves and got the terms on the website wrong, then quietly changed the page, and then denied they had. Sadly for them several people here had saved a copy of the page they changed and they had to hand out bags of compo to keep it away from the ombudsman (but it was only taxpayers' money after all).
    • jimjames
    • By jimjames 9th Nov 16, 11:24 PM
    • 12,008 Posts
    • 10,449 Thanks
    jimjames
    • #6
    • 9th Nov 16, 11:24 PM
    • #6
    • 9th Nov 16, 11:24 PM
    Bizarrely complex, don't you think?
    Originally posted by PeacefulWaters
    And such a poor rate compared to alternatives
    Remember the saying: if it looks too good to be true it almost certainly is.
    • indierocker85
    • By indierocker85 27th Nov 16, 2:14 AM
    • 1,961 Posts
    • 1,733 Thanks
    indierocker85
    • #7
    • 27th Nov 16, 2:14 AM
    • #7
    • 27th Nov 16, 2:14 AM
    I am failing to see why this account is so "complex", what am I missing?

    I decided to go with this account, out of lack of options as to where else to put my money.

    I have a Help to Buy ISA with Halifax at 2%
    A Nationwide Flex Plus Account, paying 3% (at max of £2500)
    I also have a Nationwide Flexclusive regular saver, paying 5% on £500 a month
    I have both Halifax and Virgin Money regular savings accounts paying 2% and 2.25% respectively, on £250.

    I have some money in a stocks and shares ISA, (Around £4100).

    I was left with little options for surplus income, I looked for easy access savings accounts, but they paid a mere 1% or less, so I figured the savings builder might be a good way to save up to £10k, and get 1.5% - 1%. I opened it with £8800 and intend on depositing £100 a month for the next twelve months, which would take me up to £10k. Is this a daft idea? Should I be putting it elsewhere?
    Live for what tomorrow has to bring, not what yesterday has taken away
    • Eco Miser
    • By Eco Miser 27th Nov 16, 2:59 AM
    • 2,982 Posts
    • 2,760 Thanks
    Eco Miser
    • #8
    • 27th Nov 16, 2:59 AM
    • #8
    • 27th Nov 16, 2:59 AM
    You've not mentioned TSB, Lloyds, BOS, HSBC, FD, M&S which all pay more than 1.5%, or Santander which pays 1.5% less the fee.

    Also why not add it to your S&S ISA?
    Eco Miser
    Saving money for well over half a century
    • ColdIron
    • By ColdIron 27th Nov 16, 7:20 AM
    • 3,376 Posts
    • 3,950 Thanks
    ColdIron
    • #9
    • 27th Nov 16, 7:20 AM
    • #9
    • 27th Nov 16, 7:20 AM
    I looked for easy access savings accounts, but they paid a mere 1% or less
    ...
    I opened it with £8800 and intend on depositing £100 a month for the next twelve months
    Originally posted by indierocker85
    Which will pay 1%
    • fun4everyone
    • By fun4everyone 27th Nov 16, 11:53 AM
    • 818 Posts
    • 1,358 Thanks
    fun4everyone
    Which will pay 1%
    Originally posted by ColdIron
    Wont it pay 1.5% on the first £5000 and 1% on the rest?


    I don't think this account is as complex as is made out in other posts. It doesn't match regular savers or some current accounts but once you have completely filled them (which granted is a lot of cash) this seems an OK product.
    • ColdIron
    • By ColdIron 27th Nov 16, 12:37 PM
    • 3,376 Posts
    • 3,950 Thanks
    ColdIron
    Wont it pay 1.5% on the first £5000 and 1% on the rest?
    Originally posted by fun4everyone
    Yes you're right, apologies

    We pay interest on the above tiers on a stepped basis, which means you'll earn a different rate on each portion of your balance within the tiers
    • PeacefulWaters
    • By PeacefulWaters 27th Nov 16, 1:44 PM
    • 6,843 Posts
    • 8,431 Thanks
    PeacefulWaters
    Yes you're right, apologies

    We pay interest on the above tiers on a stepped basis, which means you'll earn a different rate on each portion of your balance within the tiers
    Originally posted by ColdIron
    Which, in itself, is a rare complexity in a savings account.
    • Alonso14
    • By Alonso14 17th Apr 17, 12:57 AM
    • 96 Posts
    • 8 Thanks
    Alonso14
    I have no direct debits, and so this account is interesting. When it says your balance has to increase by 100 a month, is this only comparing consecutive months?

    Eg. can you start with 8,800, add 100 a month for 12 months, withdraw the 1200 of additional deposits at the end of the year, sacrifice 1 month of interest, and start adding 100 a month again (and earning interest going forwards)?
    • EachPenny
    • By EachPenny 17th Apr 17, 1:46 PM
    • 2,077 Posts
    • 2,889 Thanks
    EachPenny
    Yes, that's the way it appears to work Alonso14, you qualify for the bonus interest rate if the balance on your account is £100(+) more at the end of the month than the start. I opened mine last Autumn with the basic £5000 @1.5% and have topped it up with £100 per month, with the intention of doing something similar to you when the additional £100's earning only 1% become a sizeable amount which would do better elsewhere.

    At that point (unless there is something more attractive elsewhere) at the start of a month I will withdraw all the funds (not just the 'X' times £100) and earn interest on the whole balance elsewhere, before paying the original £5000 back into the account at the start of the following month. Natwest won't be having the benefit of my £5000 for a month paying me negligible interest.

    However, I only opened the account because reductions in rates elsewhere meant I had money earning 1% or less - so the 1.5% rate was attractive. The picture has changed slightly since then, there are more regular savings accounts available (e.g. Virgin Money @2.25%) so when the time comes I might not need to recycle the money in the Natwest Savings Builder.

    Before going with this account for your £8800 plus, (and remember only the first £5000 gets 1.5%) you should really have another look at other options. Not having direct debits is not a barrier to opening current accounts paying much better rates of interest - there are ways of creating all the DD's you need... just seach this forum and you'll see what I mean And some accounts like the Nationwide FlexDirect (£2500@5% in first year) don't need any direct debits, only a monthly pay in of £1000 - which with savings of £8800 plus can easily be arranged, again some searching on this forum will explain
    • Ibl0010
    • By Ibl0010 8th Sep 17, 3:34 PM
    • 38 Posts
    • 0 Thanks
    Ibl0010
    Is saving builder any good?
    I was in Nat west the other day and was told about this builder account.
    Is it better than Isa ?

    Is the return any good?

    How does it work?

    Would I have access to my savings any time?
    • eskbanker
    • By eskbanker 8th Sep 17, 3:47 PM
    • 5,466 Posts
    • 5,269 Thanks
    eskbanker
    I was in Nat west the other day and was told about this builder account.
    Is it better than Isa ?

    Is the return any good?

    How does it work?

    Would I have access to my savings any time?
    Originally posted by Ibl0010
    The first two questions are subjective and depend on what you're comparing with, so read the main savings articles linked above and decide for yourself.

    The last two questions are answered in the NatWest product info document linked from post #1, augmented by the posts in the rest of the thread.
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