NatWest, a prominent high street bank, is currently offering an exceptional easy-access savings account through its Ulster Bank arm, featuring an attractive interest rate of 5.2%. This account, although labeled as a ‘loyalty saver’, is available to both new and existing customers. To benefit from this high-interest deal, customers need to maintain a minimum balance of £5,000. Balances below this threshold would result in a lower interest rate. The interest rates are tiered, meaning that the more money you save, the higher the interest you earn.
What sets this account apart is its unlimited access feature, allowing customers to make withdrawals without any restrictions throughout the year. In contrast, many other banks limit the number of withdrawals permitted annually. This flexibility makes the Ulster Bank loyalty saver a lucrative option for savers looking for easy access to their funds.
In comparison to other offerings in the market, this account stands out. High street banks have been sluggish in passing on the Bank of England’s rate increases to savers. Some banks continue to offer rates as low as 1.5%. NatWest’s best rate on an easy-access account, prior to this offer, was just 1.75% with the flexible saver. The Ulster Bank loyalty saver, with its 5.2% interest rate, presents a significant opportunity for savers to earn substantially higher interest on their deposits. For instance, on a £20,000 deposit, the Ulster Bank account would yield £1,065 in interest, compared to a meager £353 with the regular NatWest account, resulting in a substantial difference of over £700.
Financial expert James Blower, founder of Savings Guru, suggests that NatWest is extending this offer through its Ulster Bank brand to attract new customers. By doing so, the bank avoids the necessity of increasing interest rates for its existing customers. It is likely that this unique offer will prompt new customers to apply, especially considering the substantial interest rate difference compared to other NatWest accounts.
It’s important to note that this offer is available to UK residents over the age of 16. However, joint accounts can only be opened by residents of Northern Ireland. Additionally, the Ulster Bank is part of the NatWest Group, meaning that the Financial Services Compensation Scheme (FSCS) protection for money deposited with Ulster Bank in Northern Ireland is shared across deposits held with NatWest. Savers should be mindful of their total deposits across both banks and ensure they stay below the £85,000 limit per person to maintain FSCS protection.
In summary, NatWest’s Ulster Bank loyalty saver provides an excellent opportunity for savers to earn substantial interest on their deposits, especially when compared to the meager rates offered by other high street banks. With its simple application process and unrestricted access, this account stands out as an attractive choice for both new and existing customers, offering a chance to maximize their savings with a reliable and trusted banking institution.