NatWest 1% Bonus e-ISA Interest Rates Changed

MikeMcr

The 1% bonus e-ISA has just had the interest rates changed.

Looking at the interest rates box I am confused. The bonus rates have DROPPED and are no longer 1% more than the standard rates?

Can anyone confirm it has now lost the 3.5% bonus rate?

Consumerist

It would help if you told us when you opened the account but at the moment the <NatWest e-ISA web page> is still advertising a 1% fixed bonus for 1 year to new customers. Perhaps the underlying (variable) rate has changed.

MikeMcr

Consumerist wrote: »

It would help if you told us when you opened the account but at the moment the web page is still advertising a 1% fixed bonus for 1 year to new customers. Perhaps the underlying (variable) rate has changed.

Yes, the underlying rate has changed for all customers. I am in the process of transferring in.

Consumerist

It looks as though the highest rate (including 1% bonus) has been reduced to 3.32%.

PauliPauli

Consumerist wrote: »

It looks as though the highest rate (including 1% bonus) has been reduced to 3.32%.

just spoke to them, the aer with bonus rates are now calculated over 1 year minus 1 month of no bonus

makes no diff really as the bonus rate is still for 12 months (not 11) *FROM* the date it kicks in (thats why gross rates not changed)

i think the previous rates were incorrect for 12 months, so they just have to reflect the true aer rate for 12 months *FROM* account opening, as otherwise they are giving a false aer rate

Consumerist

PauliPauli wrote: »

just spoke to them, the aer with bonus rates are still the same but now calculated over 1 year minus 1 month of no bonus . . . makes no diff really as the bonus rate is still for 12 months (not 11) *FROM* the date it kicks in (thats why gross rates not changed)

Ok. So the 3.32% AER comprises 11 months @ 3.47% pa + 1 month @ 2.47% pa.

That should answer the OP's question - the interest rate hasn't been reduced but re-stated accurately in respect of the first 12 months.

Should have spooted that myself.

PauliPauli

Consumerist wrote: »

Ok. So the 3.32% AER comprises 11 months @ 3.47% pa + 1 month @ 2.47% pa.

That should answer the OP's question - the interest rate hasn't been reduced but re-stated accurately in respect of the first 12 months.

Should have spooted that myself.

I got caught out as I'd always assumed the AER is always higher then the gross rate

.. probably got complaints from other banks marketing departments on their misleading AER rate on the comparison websites, ironic as the higher gross rate is the true monthly rate !