Natwest e-saver 6% help please

mumma2one

Hi,

I currently have a Barclays day-to-day savings account but after problems with them on my current and savings account I am looking to switch to Natwest.

Now I am rubbish with percentages and so on (I only opened my last savings account with Barclays as it was quick and easy - didn't shop around), could someone guide me as to what the 6% AER means... does it mean I get 6% interest each month or 6% spread over the year?

Could someone give me an example of what monthly interest I should get if I was to put £1000 into a Natwest e-saver account please?

Thanks!

YorkshireBoy

mumma2one wrote: »

...could someone guide me as to what the 6% AER means... does it mean I get 6% interest each month or 6% spread over the year?

The 'A' stands for annual.

Could someone give me an example of what monthly interest I should get if I was to put £1000 into a Natwest e-saver account please?

You need to use the gross p.a. rate so, for a 31 day month...

£1000 x 5.84% / 365 x 31 = £4.96 gross (£3.97 net of tax)

However, the bonus doesn't kick in until the last banking day of the month following month of opening, meaning the initial gross p.a. rate is a lowly 3.74%.

earlgrey_3

Bear in mind that, apart from the bonus, the rate is variable and as YB says the bonus rate isn't applicable until the end of the following month.

So open the account today and bonus rate starts on 31 December and by that time they may have decided to cut the underlying rate, currently 3.8%. Therefore possible never to get the 6% advertised. Best way is to keep cash somewhere with a better rate until the bonus period starts.