Natwest Fixed Term Savings - how does it work

Gareth77

Hi

I have opened a Natwest fixed term savings for 2 years

https://www.natwest.com/savings/fixed-term-savings-account.html

I understand I only get the interest at the end of the 2 years?

What I'm confused about - when does 2 years start and begin? 

It is when I opened the account, or when I put my last deposit in? 

I want to add to this over time when I can.

Thanks in advanced.

G

p00hsticks

Gareth77 said:

I want to add to this over time when I can.

I don't believe you can with this particular account. 
You pay a lump sum in at the start, leave it for two years and get it back with interest at the end of the term. 
You can't add further deposits at a later date. 
From your link
'Our Fixed Term Savings Account gives you a guaranteed, fixed interest rate for a set time. That means you'll know exactly what your interest rate will be and how much your money will grow. You just need to pay in a lump sum and leave it until your term ends. Regular deposits aren’t allowed.'  

refluxer

It tells you at the bottom of that product page you linked to...

Last date to make payments or withdrawals : 25th August 2023
Fixed term start date : 29 August 2023
Maturity date : 29 August 2025

This does mean that you can't pay into it over the duration of the term - it is common for this type of account to have a funding window like this.

Gareth77

sorry - I'm an a$$hole - my bad

so I have to add as much as I can before the end of next month

sorry I am new to this

Doctor_Who

In the summary box:

BooJewels

I too looked and can confirm what @p00hsticks says, also from the FAQ:

"You can make deposits up until 3:30pm on the last working day before the Fixed Term start date through electronic transfers, or cash deposits by visiting branch.

 Funds can be paid in by cheque but please be aware  that the cheque has to clear in time for it to be credited into the account and this must be cleared on or before the last business day before the Fixed Term Start Date. After this time money cannot be paid in until the maturity date.

 You can’t make regular deposits into a fixed NatWest saving account. Instead, you’ll need to make all your deposits by a specific cut-off date, shortly after opening the account"

And in respect of interest:

"With our Fixed Term Savings Accounts, interest is paid on the first business day of every month and on the Maturity Date."

This information is on the page you linked to - you really should read the details and ensure that they meet your needs before signing up to accounts. I wonder if you're confusing it with a regular saver where you add in every month, but can't withdraw it until the end of the term - for which restriction, you usually secure a higher rate of interest?

refluxer

Gareth77 said:

sorry - I'm an a$$hole - my bad

so I have to add as much as I can before the end of next month

sorry I am new to this

No worries, but it does highlight the importance of reading the product page, summary info and full T&Cs of any savings account that you open before you open it, so that you know exactly what you're letting yourself in for

Gareth77

BooJewels said:

I too looked and can confirm what @p00hsticks says, also from the FAQ:

"You can make deposits up until 3:30pm on the last working day before the Fixed Term start date through electronic transfers, or cash deposits by visiting branch.

 Funds can be paid in by cheque but please be aware  that the cheque has to clear in time for it to be credited into the account and this must be cleared on or before the last business day before the Fixed Term Start Date. After this time money cannot be paid in until the maturity date.

 You can’t make regular deposits into a fixed NatWest saving account. Instead, you’ll need to make all your deposits by a specific cut-off date, shortly after opening the account"

And in respect of interest:

"With our Fixed Term Savings Accounts, interest is paid on the first business day of every month and on the Maturity Date."

This information is on the page you linked to - you really should read the details and ensure that they meet your needs before signing up to accounts. I wonder if you're confusing it with a regular saver where you add in every month, but can't withdraw it until the end of the term - for which restriction, you usually secure a higher rate of interest?

No it's all good.

I want to put money away and then use it when I my mortgage comes to end of term in 3 years. I have put 20k in an ISA and it seemed the best thing to do was to put whatever else I can into a fixed term savings like this.

I guess anything else I can save in the meantime I should put in a flexible savers

BooJewels

Gareth77 said:

BooJewels said:

I too looked and can confirm what @p00hshttps://www.moneysavingexpert.com/savings/savings-accounts-best-interest/#types ticks says, also from the FAQ:

"You can make deposits up until 3:30pm on the last working day before the Fixed Term start date through electronic transfers, or cash deposits by visiting branch.

 Funds can be paid in by cheque but please be aware  that the cheque has to clear in time for it to be credited into the account and this must be cleared on or before the last business day before the Fixed Term Start Date. After this time money cannot be paid in until the maturity date.

 You can’t make regular deposits into a fixed NatWest saving account. Instead, you’ll need to make all your deposits by a specific cut-off date, shortly after opening the account"

And in respect of interest:

"With our Fixed Term Savings Accounts, interest is paid on the first business day of every month and on the Maturity Date."

This information is on the page you linked to - you really should read the details and ensure that they meet your needs before signing up to accounts. I wonder if you're confusing it with a regular saver where you add in every month, but can't withdraw it until the end of the term - for which restriction, you usually secure a higher rate of interest?

No it's all good.

I want to put money away and then use it when I my mortgage comes to end of term in 3 years. I have put 20k in an ISA and it seemed the best thing to do was to put whatever else I can into a fixed term savings like this.

I guess anything else I can save in the meantime I should put in a flexible savers

It might be an idea to learn a bit about the different types of savings accounts, so that you can choose whatever best meets your personal requirements.  There's lots of information here on the forum with threads devoted to specific types of accounts and regular updates to interest rate changes, new accounts becoming available, stopping etc.  It can be bewildering at first until you get familiar with what is available.

This might be a good starting point for the different types of accounts:  https://www.moneysavingexpert.com/savings/savings-accounts-best-interest/#types

Gareth77

BooJewels said:

Gareth77 said:

BooJewels said:

I too looked and can confirm what @p00hshttps://www.moneysavingexpert.com/savings/savings-accounts-best-interest/#types ticks says, also from the FAQ:

"You can make deposits up until 3:30pm on the last working day before the Fixed Term start date through electronic transfers, or cash deposits by visiting branch.

 Funds can be paid in by cheque but please be aware  that the cheque has to clear in time for it to be credited into the account and this must be cleared on or before the last business day before the Fixed Term Start Date. After this time money cannot be paid in until the maturity date.

 You can’t make regular deposits into a fixed NatWest saving account. Instead, you’ll need to make all your deposits by a specific cut-off date, shortly after opening the account"

And in respect of interest:

"With our Fixed Term Savings Accounts, interest is paid on the first business day of every month and on the Maturity Date."

This information is on the page you linked to - you really should read the details and ensure that they meet your needs before signing up to accounts. I wonder if you're confusing it with a regular saver where you add in every month, but can't withdraw it until the end of the term - for which restriction, you usually secure a higher rate of interest?

No it's all good.

I want to put money away and then use it when I my mortgage comes to end of term in 3 years. I have put 20k in an ISA and it seemed the best thing to do was to put whatever else I can into a fixed term savings like this.

I guess anything else I can save in the meantime I should put in a flexible savers

It might be an idea to learn a bit about the different types of savings accounts, so that you can choose whatever best meets your personal requirements.  There's lots of information here on the forum with threads devoted to specific types of accounts and regular updates to interest rate changes, new accounts becoming available, stopping etc.  It can be bewildering at first until you get familiar with what is available.

This might be a good starting point for the different types of accounts:  https://www.moneysavingexpert.com/savings/savings-accounts-best-interest/#types

BooJewels said:

Gareth77 said:

BooJewels said:

I too looked and can confirm what @p00hshttps://www.moneysavingexpert.com/savings/savings-accounts-best-interest/#types ticks says, also from the FAQ:

"You can make deposits up until 3:30pm on the last working day before the Fixed Term start date through electronic transfers, or cash deposits by visiting branch.

 Funds can be paid in by cheque but please be aware  that the cheque has to clear in time for it to be credited into the account and this must be cleared on or before the last business day before the Fixed Term Start Date. After this time money cannot be paid in until the maturity date.

 You can’t make regular deposits into a fixed NatWest saving account. Instead, you’ll need to make all your deposits by a specific cut-off date, shortly after opening the account"

And in respect of interest:

"With our Fixed Term Savings Accounts, interest is paid on the first business day of every month and on the Maturity Date."

This information is on the page you linked to - you really should read the details and ensure that they meet your needs before signing up to accounts. I wonder if you're confusing it with a regular saver where you add in every month, but can't withdraw it until the end of the term - for which restriction, you usually secure a higher rate of interest?

No it's all good.

I want to put money away and then use it when I my mortgage comes to end of term in 3 years. I have put 20k in an ISA and it seemed the best thing to do was to put whatever else I can into a fixed term savings like this.

I guess anything else I can save in the meantime I should put in a flexible savers

It might be an idea to learn a bit about the different types of savings accounts, so that you can choose whatever best meets your personal requirements.  There's lots of information here on the forum with threads devoted to specific types of accounts and regular updates to interest rate changes, new accounts becoming available, stopping etc.  It can be bewildering at first until you get familiar with what is available.

This might be a good starting point for the different types of accounts:  https://www.moneysavingexpert.com/savings/savings-accounts-best-interest/#types

Thanks - I've done a bit on that

and it seemed to put as much as I could this year into an ISA (I went Virgin), followed by as much as I can into a fixed interest rate (I went Natwest) - and then I guess the rest into a flexible savings (I need to research the best for this).

I got the 2 year fixed, as 3 year didn't seem to offer much better.

BooJewels

No, at the moment, 2 years do seem to be offering better terms than longer.  That's because the provider has to try and second guess the market into the future and inflation and interest rates are expected to drop in the longer term - so 18 months and 2 years seem to be the best rates just now.

Check the second post in this thread on page 1 - it is maintained by soulsaver to show the top ten easy access accounts on any week.  But they can vary in the terms they offer, so ensure that you read the T&C for each account that's of interest to you.

And there are slight variations on the easy access theme too - if you know when you will need the money, another alternative is a notice account.  You need to give a specified amount of notice to withdraw money - anything from 30 to 120 days - in exchange for which, they can offer slightly better interest rates.  There are also limited access accounts - also offering fractionally better rates but limit how many times you can withdraw from them.

I'm afraid there's not really any shortcut to just researching them carefully, to find one that's a good fit for you - the devil is in the detail - so you need to work your way through it.