Natwest Savings Builder Calculation Date

InA

Hi all,

I opened this account following the barrage of rate drop notifications. I plan to remove / add back some of the balance each month so that I can keep this account for a longer period without needing to "reset" it. This is my first month and I was hoping someone could advise on the date when the reference balance is logged for comparison. I  had the 29th stuck in my mind, but thought I'd check these forums for further info. However, posters here are saying it's the "second to last" working day of the month (which would be today's date - 28th rather than the 29th). Is the balance check on the 29th or the 28th of this month? Does anyone have any idea of the time this is done (i.e. midnight? or close of working day? etc)?

Have I missed this month's balance check?

Thanks in advance!

eddie7612

For payments in online banking NatWest use 6:30pm as the cut off time for it being considered that day, so I wouldn't be surprised if that is when the balance check is done.

bubieyehyeh

I think they measure the £50 increase on 2nd last banking day of the month, so I've been removing on last 3rd banking day and replacing it on last banking day so far. So taking out on 27th Jan 2021 and next month 24th Feb 2021

Lee_N

They tell you on the website ... second last business day of each month but recommend the 25th of each month to avoid missing it.
I'm struggling to see what you're trying to achieve by doing this, what am I missing?

eskbanker

Lee_N said:

I'm struggling to see what you're trying to achieve by doing this, what am I missing?

This account is unusual in that it pays interest only if the balance increases by £50 from one month to the next, as measured on a specific day, so maxing the account with £10K but temporarily reducing the balance on each such date (e.g. by £600 in month 1, £550 in month 2, etc, reversing these immediately after the qualifying date, to create a planned series of increases) allows interest to be optimised.

Lee_N

eskbanker said:

Lee_N said:

I'm struggling to see what you're trying to achieve by doing this, what am I missing?

This account is unusual in that it pays interest only if the balance increases by £50 from one month to the next, as measured on a specific day, so maxing the account with £10K but temporarily reducing the balance on each such date (e.g. by £600 in month 1, £550 in month 2, etc, reversing these immediately after the qualifying date, to create a planned series of increases) allows interest to be optimised.

I've got ~10k in this account, I just leave it there and once in a while take some out if I need to, in which case I lose one month's interest. Hadn't even occurred to me about doing something like this, although at 0.75% I'm not that bothered if I lose the occasional month.

eskbanker

Lee_N said:

eskbanker said:

Lee_N said:

I'm struggling to see what you're trying to achieve by doing this, what am I missing?

This account is unusual in that it pays interest only if the balance increases by £50 from one month to the next, as measured on a specific day, so maxing the account with £10K but temporarily reducing the balance on each such date (e.g. by £600 in month 1, £550 in month 2, etc, reversing these immediately after the qualifying date, to create a planned series of increases) allows interest to be optimised.

I've got ~10k in this account, I just leave it there and once in a while take some out if I need to, in which case I lose one month's interest. Hadn't even occurred to me about doing something like this, although at 0.75% I'm not that bothered if I lose the occasional month.

But just to be clear, loss of interest isn't based on withdrawing as such, you have to increase the balance by at least £50 each month to qualify for it.  Obviously nobody's forced to finesse their arrangements to squeeze every penny of interest out of their savings but 0.75% is a good deal in the current climate....

Lee_N

eskbanker said:

But just to be clear, loss of interest isn't based on withdrawing as such, you have to increase the balance by at least £50 each month to qualify for it.  Obviously nobody's forced to finesse their arrangements to squeeze every penny of interest out of their savings but 0.75% is a good deal in the current climate....

I pay £100 monthly into it so no problem maintaining the eligibility. I might withdraw once or twice over the year and keep an average around 10k. So what you're saying is that If I withdraw on, or right after the second last day, then the following £100 monthly top up will stop me losing that month's interest? Worth doing if it's simple enough I guess - not sure my brain can take it though  

eskbanker

Lee_N said:

eskbanker said:

But just to be clear, loss of interest isn't based on withdrawing as such, you have to increase the balance by at least £50 each month to qualify for it.  Obviously nobody's forced to finesse their arrangements to squeeze every penny of interest out of their savings but 0.75% is a good deal in the current climate....

I pay £100 monthly into it so no problem maintaining the eligibility. I might withdraw once or twice over the year and keep an average around 10k. So what you're saying is that If I withdraw on, or right after the second last day, then the following £100 monthly top up will stop me losing that month's interest? Worth doing if it's simple enough I guess - not sure my brain can take it though  

It depends on how much you withdraw - the basis of interest calculation is to measure the balance on the second last working day of each month and compare it to the equivalent date the previous month, and if the change in balance is at least £50 then they pay the interest, regardless of the volume and value of all interim transactions.

So if you withdraw £50 and pay in £100 during one such cycle then you'd earn interest, but if you withdrew £!00 and paid in £100 you wouldn't.

RG2015

I received a letter today advising that the rate for up to £10k is being reduced to 0.25% from 16th February.

Lee_N

eskbanker said:

So if you withdraw £50 and pay in £100 during one such cycle then you'd earn interest, but if you withdrew £!00 and paid in £100 you wouldn't.

Ok thanks. In that case it's not worth me worrying about, I can live with losing ~one month's interest per year.