MSE news: Natwest/RBS to launch 5% monthly savings account

lm0503

Went to my local NatWest to enquire today and i had to book an appointment to have a "review" in order to open the account. So had my review, and am not bothering to open an account. The guy selling it to be didn't seem to think it was that great either. I have the Barclays monthly saver already which pays 6% on the £250 I deposit, interest accrues monthly and I can see it all in my account, and I can withdraw when I want - only then I lose the future interest (and maybe that months I can't remember) . By comparison this NatWest account is basically like a 12 month fixed rate account that you can only put £250 in each month, and the overall interest rate is 2 point something percent. So I'm better off keeping my money in my 3.15% alliance and leicester saver.

jimbow25

The terms are good - The account is virtually identical to the Halifax 5% account. In fact I can't see any difference. £25-500 per month, no missed payments or withdrawals allowed.

By contrast the Lloyds one is only £250 per month max but it does allow instant access. So I guess it's take your pick between that or the Halifax/RBS/Natwest option.

apt

lm0503 wrote: »

Went to my local NatWest to enquire today and i had to book an appointment to have a "review" in order to open the account. So had my review, and am not bothering to open an account. The guy selling it to be didn't seem to think it was that great either. I have the Barclays monthly saver already which pays 6% on the £250 I deposit, interest accrues monthly and I can see it all in my account, and I can withdraw when I want - only then I lose the future interest (and maybe that months I can't remember) . By comparison this NatWest account is basically like a 12 month fixed rate account that you can only put £250 in each month, and the overall interest rate is 2 point something percent. So I'm better off keeping my money in my 3.15% alliance and leicester saver.

Surely Regular Savers have been explained enough on this site for you to realise you would earn more interest by drip feeding from your 3.15% Alliance and Leicester saver into a 5% Regular Saver. Also you will not be able to renew the Barclays Monthly saver at 6% once the 12 month term is up. The current rate for new Barclays Monthly savers is 4.25%.

RayWolfe

Well said apt. How you have the stamina to give sensible replies to all these people who are unable or unwilling to read, I don't know!

chambta

lm0503 wrote: »

Went to my local NatWest to enquire today and i had to book an appointment to have a "review" in order to open the account. So had my review, and am not bothering to open an account. The guy selling it to be didn't seem to think it was that great either. I have the Barclays monthly saver already which pays 6% on the £250 I deposit, interest accrues monthly and I can see it all in my account, and I can withdraw when I want - only then I lose the future interest (and maybe that months I can't remember) . By comparison this NatWest account is basically like a 12 month fixed rate account that you can only put £250 in each month, and the overall interest rate is 2 point something percent. So I'm better off keeping my money in my 3.15% alliance and leicester saver.

Maybe he wasn't too bothered about 'selling' it!

agsnu

apt wrote: »

Surely Regular Savers have been explained enough on this site for you to realise you would earn more interest by drip feeding from your 3.15% Alliance and Leicester saver into a 5% Regular Saver. Also you will not be able to renew the Barclays Monthly saver at 6% once the 12 month term is up. The current rate for new Barclays Monthly savers is 4.25%.

Of course, the maximum combined return from drip feeding at those rates would be about 4.4%, giving you a total increase in return of £38. That assumes zero lost interest for transfers, doesn't take into account tax, etc. Is it really worth the hassle of opening an account, making sure you do the transfer every month, etc, for <£40?

Andystriker

agsnu wrote: »

Is it really worth the hassle of opening an account, making sure you do the transfer every month, etc, for <£40?

Yes

Set up a Standing Order from my Current Account.

No hassle required

chambta

agsnu wrote: »

Of course, the maximum combined return from drip feeding at those rates would be about 4.4%, giving you a total increase in return of £38. That assumes zero lost interest for transfers, doesn't take into account tax, etc. Is it really worth the hassle of opening an account, making sure you do the transfer every month, etc, for <£40?

For me yes. All these little 'hassles' this year will have more than paid for our cottage in Cornwall in September.