The cut to interest rates comes as the Bank of England slashed its base rate by 0.25 percentage points to 4.25% earlier this month. On the day, savers were immediately warned about the impact the move would have on them
NatWest is making a huge change to millions of bank accounts from next month in a blow to banking customers. The high street building society will be slashing the interest rates offered on some of its most popular savings accounts from May 30.
Some of the NatWest accounts impacted by the cuts at the end of this month include its Digital Regular Saver, Flexible Saver and Help to Buy ISA. However, a further four will see rates drop a little later from July 15 and these include the building society’s First Saver, Adapt Account, First Reserve, and Primary Savings.
Only one NatWest savings account is not changing, and this is its Cash ISA. The interest rate for this account will remain at 2.7% for balances over £25,000 and at 1.4% for those under.
The cut to interest rates comes as the Bank of England slashed its base rate by 0.25 percentage points to 4.25% earlier this month. On the day, savers were immediately warned about the impact the move would have on them.
The Bank of England’s base rate influences what banks and lenders charge you to borrow money, but it also dictates how much banks will pay you in interest on your savings. When the base rate is higher, the banks will pay you more. When the base rate drops, the banks will pay you less.
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Alice Haine, personal finance analyst at Bestinvest by Evelyn Partners, said: “Savings rates are now firmly in retreat mode and with more bank rate reductions expected, those that want to preserve their return must act fast by securing the best deal possible while interest rates remain on the higher side.
“This is imperative for anyone with money idling in a current account or an old savings account offering a dismal return, which is being slowly eroded by inflation.”
On the rate cuts, a NatWest spokesperson said: “Following the Bank of England base rate cut, we have made reductions to some of our variable rate savings accounts.
“We will communicate these changes to customers in due course, giving at least 14 days’ notice of any changes. Details of these changes are available on our website now.”
Full list of NatWest savings accounts changing
- Digital Regular Saver (£1 – £5,000) – Going from 6.17% to 5.50%
- Digital Regular Saver – (Over £5,000) – Going from 1.25% to 1.15%
- Flexible Saver – (£1 – £24,999) – Going from 1.25% to 1.15%
- Flexible Saver – (£25,000 – £99,999) – Going from 1.85% to 1.70%
- Flexible Saver – (£100,000 – £249,999) – Going from 2.10% to 1.95%
- Flexible Saver – (£250,000 – £999,999) – Going from 2.70% to 2.55%
- Flexible Saver – (£1million plus) – Going from 2.70% to 2.55%
- Savings Builder – (£1 – £10,000) – Going from 2.00% to 1.75%
- Savings Builder – (Over £10,000) – Going from 1.25% to 1.15%
- Cash ISA (Tax-free) – (£1 – £24,999) – Going from 1.40% to 1.40%
- Cash ISA (Tax-free) (£25,000 plus) – Going from 2.70% to 2.70%
- Help to Buy ISA (Tax-free) – (From £1) – Going from 2.02% to 2.05%
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