Natwest Digital Regular Saver - interest rate going down

SamDude

Email from Natwest stating the 6.17% rate (upto £5000) is going down to 5.50% from the 30th May.
The rate above £5000 is reducing from 1.25% to 1.15%.

surreysaver

All reported either last week or the week before in the Regular Saver thread 

cjjhbn

Time to close this account?.

jameseonline

cjjhbn said:

Time to close this account?.

Nah leave it open and move majority of funds into better accounts if you can, that way if rates go back up you don't have to go through the hassle of re applying etc.

I've pretty much emptied most of my funds from it & the RBS one anyway the past few months, looks like I might move the rest into my Santander Edge Saver.

Archerychick

I’m planning on leaving open, but with a few pence in. I’m moving the money into my ISA instead as that’s going to give me a better return 

allegro120

cjjhbn said:

Time to close this account?.

Not for me.  £10k (NatWest and RBS combined) easy access @5.5% is much better than any of my conventional EA accounts.

Kim_13

Made the mistake of emptying to fund other accounts in 2023, so won’t be so hasty again. They’ve responded fairly to movements for as long as I’ve had the account, I just won’t max it out every month if there are better options available.

fergie_

I know they didn't cut it last time and they also say they compared rest of market, but does seem a hefty cut in one go.

35har1old

fergie_ said:

I know they didn't cut it last time and they also say they compared rest of market, but does seem a hefty cut in one go.

This is the first time they have cut it since the Bank of England began cutting rates August 2024 down to 5% from 5.25%

clairec666

cjjhbn said:

Time to close this account?.

Not necessarily, it's still a good rate. No point withdrawing the whole lot, unless there's somewhere with a better rate that accepts lump sums (only Santander by the look of it?) I'm keeping both my Natwest and RBS, but might not top them up every month.

Chris_Type_R

Coincidently the rate drop announcement has dropped just as I've reached £5k.

Need to decide if I keep this as my emergency funds or reduce my mortgage (4.5%) and then treat my S&S ISA as a slightly less liquid emergency fund.