Natwest/RBS 2.85% esaver

nilrem_2

zermattbusby wrote: »

Many thanks nilrem for the quick reply, that looks ideal, If I apply tomorrow, how long do you think it will take to open the account? (assuming that is, I meet all the correct criteria)

Well what happened with me was that I filled in the form online, all the checks were done instantly and at the end I was given an account number, shortly after I received an email stating that the account was processing and that it would be open the next working day,

Although it sort of implied that I would have to await details via the post before the account was working I was able to log in the next day and add money.

If you have a Natwest esaver account you will have plenty of time still to move a considerable amount into a N/R account by the 14th Feb, in any case even if you overshoot by a few days it's not a huge amount of interest you are losing.

Remember that the max you can move in one day is £10k unless you use chaps which costs!

The main aim is to get the cash out of an account that will be paying 1.00% and into one paying 2.85%.

home_alone

zermattbusby wrote: »

Many thanks nilrem for the quick reply, that looks ideal, If I apply tomorrow, how long do you think it will take to open the account? (assuming that is, I meet all the correct criteria)

I opened mine (form filling) on wed and now have done 3 transfers into Northern Rock (Virgin) 2 trials and first lump from nat west another lump going later today, very easy.

RetiredInThailand

I'm moving half of my NatWest deposit to a Santander eSaver paying 3.1%, but with the other half I'm also taking out a 2-year bond with NatWest on which the rates have recently increased from 3.5 to 3.7% (there's a surprise).

psychic_teabag

One thing to be aware of with NatWest is that they seem to take your money early and give you a lower rate until the bond actually starts : looks like it starts 19th March, and they'll only give you 2% until then. But that doesn't seem to be reflected in the AER.

RetiredInThailand

That's very true. They also have an annoying habit of discontinuing bonds before the start date, thus obliging anyone who wants one to wait even longer at 2% to get one.

However, 2% is still better than 1%.

eviekins

Is there a reason why people are picking northern rocks 2.85% over santanders 3.1%? Not sure if I'm missing something!? Answers greatly appreciated!

nilrem_2

psychic_teabag wrote: »

One thing to be aware of with NatWest is that they seem to take your money early and give you a lower rate until the bond actually starts : looks like it starts 19th March, and they'll only give you 2% until then. But that doesn't seem to be reflected in the AER.

This is precisely why I am opening a fixed rate with Birm/midshires, the rate is better but it starts from day one, Natwest short change you by paying a lower rate for up to 6 weeks before the proper advertised rate starts, they do it on their fixed ISA's too!

When you factor in the rate for the first few weeks the headline rate is not so attractive.

psychic_teabag

RetiredInThailand wrote: »

However, 2% is still better than 1%.

Well.. yeah... but you can get 4% instant-access for a year from Monmouth BS, or you should be able to get 4% on more for a 2-year bond elsewhere.

psychic_teabag

eviekins wrote: »

Is there a reason why people are picking northern rocks 2.85% over santanders 3.1%? Not sure if I'm missing something!? Answers greatly appreciated!

Northern rock doesn't include an introductory bonus : 2.85 is "clean" (though presumably still variable). Or maybe it's because it's available as a branch rate as well as an online rate.

buffman

I would have thought Santander's e-Saver would be better. The rate is 3.1% for 12 months with instant access. Northern Rock's rate is 0.25% lower and variable. As long as you have a diary note to review your savings in 12 months time, I would go for the higher rate.