NatWest launches competition for their 3% savings account – customers could win thousands

NatWest explain how they are helping during the pandemic

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NatWest has today launched a new savings competition to encourage first-time savers to build up their pots. The £1,000 competition begins today, March 1, and 10 customers will each be awarded £1,000 for opening an account with the firm and saving into it regularly.

To enter the competition, customers will need to open a Digital Regular Saver account this month and save between £1-£50 in April, May and June.

The winners will be selected in July with 10 customers winning £1000 each.

NatWest detailed over the last year or so around 650,000 customers started saving for the first time, and the bank is aiming to help two million customers start saving by 2023.

They wish to help increase financial capability and they detailed their Digital Regular Saver account is designed to help customers with little or no savings develop a savings habit.

It should be noted this savings account “unlike other regular saving accounts” does not close after a year.

NatWest also explained the account is more flexible too, allowing for withdrawals to be made without the need to close the account.

Interest for the account is paid monthly with the top rate of three percent paid on balances of up to £1000.

Lewis Broadie, NatWest’s Savings Expert, provided the following comments along with the announcement: “Since the launch of the Digital Regular Saver we have seen that once customers begin to save they develop a really good savings habit and with the added incentive of a chance to win £1000 we hope to help even more customers kickstart a savings habit.”

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Savers will likely want to jump on these kinds of offers as recent analysis from moneyfacts.co.uk revealed rates across the board have plummeted.

Moneyfacts.co.uk examined how the savings market is coping a year on from the initial “financial shock” of the pandemic.

According to their analysis, savings rates have plummeted to record lows as providers cut and pulled their offers over the last 12 months or so.

On top of this, moneyfacts.co.uk warned that a large inflow of savers’ cash could push providers to review thier interest rates as deals may become oversubscribed.

in reviewing the savings market over the last two years or so, the following averaged results were found:

  • Average easy access rates were at 0.64 percent in March 2019. In March 2021 they are sitting at 0.17 percent
  • Average one-year fixed bonds were at 1.48 percent in March 2019. In March 2021 they are 0.44 percent
  • Average five-year fixed bonds were at 2.18 percent in March 2019. In March 2021 they are 0.84 percent

Rachell Springall, a Finance Expert at moneyfacts.co.uk, commented on the current state of the savings market: “Savers searching for the best possible return for their cash will be disappointed to see interest rates have fallen to record lows over the past year.

“Consumers may well have put away more cash during lockdown, but before then the impact of the Coronavirus had initiated two base rate cuts in March 2020, which combined with a subsequent drop in competition, decimated the savings landscape.

“One of the most popular savings vehicles are easy access accounts and it would not be surprising to see savers continue to favour deals where they can get instant access to their cash.

“However, as the average rate on easy access accounts has dropped to 0.17 percent, some savers looking for a better return may need to review their options, such as with a fixed bond, but keep in mind that these vehicles have also seen large rate cuts.

“It is hoped that competition will return to the saving market, but it will no doubt be a steady process and not an overnight sensation. Savers would be wise to take advantage of any tax-free savings vehicles or Government initiatives such as the Help to Save scheme in the meantime and of course any plans for a new Government-backed NS&I savings deal to help combat the deficit.”

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