Natwest Savings Builder

pafpcg

sheffieldeagle wrote: »

Can anyone confirm if its possible to have two Savings Builder accounts (1 joint & 1 single)?

Yes, it is possible.

RG2015

sheffieldeagle wrote: »

Hi

Can anyone confirm if its possible to have two Savings Builder accounts (1 joint & 1 single)?

Cheers

Have you looked on the NatWest website? I have included a link below which says:

You can only have one Savings Builder Account in your sole name, and only one Savings Builder Account in joint names with another person.

https://personal.natwest.com/personal/_compare_savings_accounts/_savings_builder.html

sheffieldeagle

RG2015 wrote: »

Have you looked on the NatWest website? I have included a link below which says:

You can only have one Savings Builder Account in your sole name, and only one Savings Builder Account in joint names with another person.

https://personal.natwest.com/personal/_compare_savings_accounts/_savings_builder.html

Cheers for that I'm just being ultra careful as it's for someone else not me.

Novice_investor101

I've opened one of these accounts to pay into from January for my save £12k in 2019 challenge (I'm saving £2k tho).

I also have a monthly SO for £125 that goes into a bog standard savings account at 0.2%. I use this money to pay for one off annual bills - like home/car insurance, breakdown cover, boiler service etc etc when they are due.
The balance of this can get as high as £600 before the bills come round & as the bills are spread over the year money comes out often too.

Can I use the Savings builder to stash this money too?
I know the account says I have to grow the balance by £50 each month. But is that based on just what it was the previous month or the highest total it has been in any previous month's? I'll be paying a minimum of £50 pm into it plus whatever I've left from disposable income.

In some months I'll be paying in the £125 but taking out, say £250, to pay the car insurance bill, or £150 for the TV licence. Will I only lose the interest for that month & then it uses the new, lower, closing balance for the next month?

Tbh, some of the smaller bills like the £50 boiler service & £60 mot I'll pay from that months disposable so I'll only withdraw from it probably a max 4times in a year.

verybigchris

Novice_investor101 wrote: »

Will I only lose the interest for that month & then it uses the new, lower, closing balance for the next month?

Yes.


To be honest, there's really no point using this account now, when Marcus pays the same interest rate on an instant access account.

Novice_investor101

The only reason I've got it is because my main current account is with NatWest. I like the functionality of the app, & I've a good set up of savings accounts & DD/SO's set up already elsewhere to hold my emergency fund & other fixed rate/term accounts.
I want to use this account to just hold the small amounts I'll not miss or already save but need/want to be able to transfer to my current account instantly (hence the bills money).
It does sound like I can use it how I want - I'm not fussed about losing one month's interest, as it's still more than I was getting from the 0.2% instant saver.

deutsch

i know this is an old thread, but if you wtihdraw any amount within a month, you lose the interest for that month. anyway around this/

w0z

I know this thread is old.
I've posted this reply because of the recent onslaught to interest rates. Santander is dropping the 123 rate to 1% from 5th May 2020, LLoyds and BOS have already tiered their accounts to 1% to £4k and 2% £4k-5k
Marcus have dropped (or is it drooped) their rate to 1.35%, so for some this a/c may be a viable option if handled with care.

The conditions of the account are currently as follows:
Interest rate 1.5% up to £10,000 as long as the balance increases by £50 or more from the previous month* (then 0.2% above £10k).
*The balance of the account is checked at the end of the month on THE SECOND TO LAST BUSINESS DAY OF THE MONTH, a month runs from 1st, to the second to last business day as far as the balance check is concerned. Natwest say if paying in by Standing Order it should be paid by 25th latest.
You can do what you want as far as withdrawals are concerned AS LONG AS YOU HAVE £50 MORE IN THE ACCOUNT THAN THE ACCOUNT HAD IN IT ON SECOND TO LAST BUSINESS DAY OF THE PREVIOUS MONTH you will get interest calculated on the balance daily, is my understanding. (read on).

As far as I can see there are a few ways to run the account depending on your circumstances, all are a bit messy and any withdrawal strategy requires significant manual intervention, which is why it may not be for all but the most organised.

1. Pay in regular payments of £50 or more every month up to £10k
(at £100/month it would take 8 years 4 months to reach £10k! inversely pro-rata for higher monthly payments in, e.g 3yr. 4mo. for £250pcm)

If you need to make a withdrawal and can't top it back up by the second to last working day, take out the whole amount (bar £1 I suppose to be on the safe side) as near to the first of the month(*~*see note at end) and put what's left after you've spent what you needed into another interest bearing account for a month.You then have missed a whole month when you would have had no interest in the Natwest account. Then start saving again in this account the month after as near or beyond 1st of the month. (See below if you want to start again with a lump sum.)

2. Start with a lump sum and top up by £50 or more on 1st month until you reach £10k Same condition as above re withdrawals.

3. This is the most messy. Why anyone would do this for a few extra £ is beyond me, you'd have to be really organised to make it work, and it's doomed to failure because of the manual complexity.

Put £10k or whatever lump sum £lump in on 1st month or near 1st, and temporarily withdraw £lump less £50 by 25th or as near to the second to last working day and redeposit the cash on 1st next month. You would withdraw £lump less £100 by or on 25th etc, then all but £150 on next month etc. I can't believe anyone would do this, but still....
just in case... <--

*~* minor update, quoting t&c's : the monthly interest cycle runs from close of business on the second-last business day of one month, to close of business on the second-last business day of the following month.
The optimum time to withdraw then is not the 1st of the month but after close of business on the second to last day because in certain circumstances if you wait until 1st you could lose several days interest on a substantial withdrawal if the last business day is a Friday. Far too complicated...

silvermum

I've had this account for a couple of years and use it to store cash which I may or may not need in the next 12 months. My strategy has been to start by putting £9400 in and then adding £50 each month for the next year, then at the 12 month mark moving £600 out and starting again.
Broadly it feels as if I'm maximising my interest whilst not having to fiddle around with standing orders flying around in and out of my accounts.

I'm sure someone will be along soon to explain the exact maths i.e. risk/ reward calculation for this strategy, but broadly, the loss of about £12 interest in the month I 'reset' it is something I can live with.

I know I could perhaps find a current account paying a straight 1.5% without restrictions, but I already bank with NatWest so I find this a useful account to have in the same 'stable'.

Jami74

RBS is the same as NatWest.

It's possible to have two Savings Builders, one with each bank