What does anyone think of NatWest e-savings?

Icesaver

lolly5648 wrote: »

Can someone explain how Natwest work out the monthly interest rate please.

I opened the account on 24 September with £1000, then £750 on 7/10 and £10000 on 29/10. I only received £6.38 interest, is this correct as it seems a bit low.

I don't know how to do the calculation.

Thanks

Seems about right to me


Nat west Interest rate is 4.3% per year until bonus kicks in

assuming your interest was credited on 31 Oct

You had £1000 in for 38 days so calculation is 4.3 % of 1000 = 43 divide 43 by 365 and multiply by 38 = 4.47

You then had £750 in for 24 days again 4.3% of 750 = 32.25 divided by 365 then multiplied by 24 = 2.12


And 1000 for 2 days would be 23p

so your interest is 4.47 + 2.12 + .23 = 6.81




I'm assuming the cash was gaining interest from the day you said you put it in.

Icesaver

My calculation is for gross interest

lolly5648

Thanks Icesaver,

As I opened the account in September I assumed I would get the bonus rate on 31 October on all my money. Have I misunderstood - do you only get the bonus at the end of the following month on any money you put in?

ozzage

The bonus rate only starts from the end of the month AFTER you open the account, so 31 October in your case. From now on you'll get the extra 2.09%.

Icesaver

As Ozzage says you have to wait a month for the bonus

apt

The underlying rate is now 3.8%, with a claimed 6.0% AER including the bonus.

lulu999

Had a phone call from the Financial Ombudsman today. He said NatWest are going to credit me with my calculated loss due to the unclear details (on their website and call centre) with regard to when the bonus rate applied. Worth a couple of letters to get £75 interest back.

coolio_2

So has the rate changed since I opened my account in November? I have about 10k in there and am getting about £9 a month interest yet my ISA with them, which i thought was on a similar interest rate albeit tax free, for 10k is £45

ScarletBea

coolio wrote: »

So has the rate changed since I opened my account in November? I have about 10k in there and am getting about £9 a month interest yet my ISA with them, which i thought was on a similar interest rate albeit tax free, for 10k is £45

Yes, because it's a variable rate.
The esavings account with bonus is now 3.19% gross (it actually increased a bit last month).

I'm not sure about the ISA rate because there are several types, and also the bonus is different depending on dates joined: mine (cash ISA, 1.76% bonus) is paying just 2.76% gross.