Natwest Savings Builder

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KTF
KTF Posts: 4,820 Forumite
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in Savings & investments
I haven't seen this posted here yet but Natwest have an account that pays tiered interest if you increase the balance by £100 a month:

http://personal.natwest.com/personal/savings/savings-builder.html

Balance / Balance grows by less than £100 a month / Balance grows by at least £100 a month
£1 - £5,000 / 0.10% / 1.50% (includes 1.40% bonus)
£5,000 - £10,000 / 0.10% / 1.00% (includes 0.90% bonus)
Over £10,000 / 0.10% / 0.20% (includes 0.10% bonus)

May be of interest to people who have a small balance in Santander 123 accounts and still have money to drip feed into the account each month.
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Comments

  • Pincher
    Pincher Posts: 6,552 Forumite
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    I think this is supposed to work by celebrities on social media.
    Like:

    Paris Hilton:

    "Opened a NatWest Savings thing, so fun, X X X poodlekins."

    1.5%? It does not compute.
  • PeacefulWaters
    PeacefulWaters Posts: 8,495 Forumite
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    Bizarrely complex, don't you think?
  • KTF
    KTF Posts: 4,820 Forumite
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    Yes. Plenty of trapdoors for you to fall through so they don't pay the bonus interest.
  • Rollinghome
    Rollinghome Posts: 2,676 Forumite
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    Complicated enough to be the work of the card who brought us their E saver a few years back. As I remember paid 2% bonus on 1% basic but the bonus didn't start until a month after the end of the month in which the account was opened - so no bonus would be earned for up to 8 weeks after opening. As it only lasted a year it cunningly reduced the headline rate.

    So cunning that they didn't understand it themselves and got the terms on the website wrong, then quietly changed the page, and then denied they had. Sadly for them several people here had saved a copy of the page they changed and they had to hand out bags of compo to keep it away from the ombudsman (but it was only taxpayers' money after all).
  • jimjames
    jimjames Posts: 17,619 Forumite
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    PeacefulWaters wrote: »
    Bizarrely complex, don't you think?

    And such a poor rate compared to alternatives
    Remember the saying: if it looks too good to be true it almost certainly is.
  • indierocker85
    indierocker85 Posts: 2,079 Forumite
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    I am failing to see why this account is so "complex", what am I missing?

    I decided to go with this account, out of lack of options as to where else to put my money.

    I have a Help to Buy ISA with Halifax at 2%
    A Nationwide Flex Plus Account, paying 3% (at max of £2500)
    I also have a Nationwide Flexclusive regular saver, paying 5% on £500 a month
    I have both Halifax and Virgin Money regular savings accounts paying 2% and 2.25% respectively, on £250.

    I have some money in a stocks and shares ISA, (Around £4100).

    I was left with little options for surplus income, I looked for easy access savings accounts, but they paid a mere 1% or less, so I figured the savings builder might be a good way to save up to £10k, and get 1.5% - 1%. I opened it with £8800 and intend on depositing £100 a month for the next twelve months, which would take me up to £10k. Is this a daft idea? Should I be putting it elsewhere?
    Live for what tomorrow has to bring, not what yesterday has taken away
  • Eco_Miser
    Eco_Miser Posts: 4,708 Forumite
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    You've not mentioned TSB, Lloyds, BOS, HSBC, FD, M&S which all pay more than 1.5%, or Santander which pays 1.5% less the fee.

    Also why not add it to your S&S ISA?
    Eco Miser
    Saving money for well over half a century
  • ColdIron
    ColdIron Posts: 9,051 Forumite
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    indierocker85 wrote: »
    I looked for easy access savings accounts, but they paid a mere 1% or less
    ...
    I opened it with £8800 and intend on depositing £100 a month for the next twelve months
    Which will pay 1%
  • fun4everyone
    fun4everyone Posts: 2,339 Forumite
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    ColdIron wrote: »
    Which will pay 1%

    Wont it pay 1.5% on the first £5000 and 1% on the rest?


    I don't think this account is as complex as is made out in other posts. It doesn't match regular savers or some current accounts but once you have completely filled them (which granted is a lot of cash) this seems an OK product.
  • ColdIron
    ColdIron Posts: 9,051 Forumite
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    fun4everyone wrote: »
    Wont it pay 1.5% on the first £5000 and 1% on the rest?
    Yes you're right, apologies

    We pay interest on the above tiers on a stepped basis, which means you'll earn a different rate on each portion of your balance within the tiers
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