NatWest is now offering a market-leading easy access account with 5.2 percent through its Ulster Bank arm.
As interest rates remain high, banks have increased the rate people can get on their savings to remain competitive in the market.
As competition continues easy-access savings have also started to see the interest rates creep up.
Britons can now get over five percent with Ulster Bank.
The account can be managed online and allows for an unlimited amount of withdrawals
Savers can get 5.20 percent AER/Gross p.a. (variable) on balances of £5,000 and over.
They will earn 2.25 percentAER/Gross p.a. (variable) on balances between £1 – £4,999.
Individuals can pay money in by transfer from a current account or savings account in their name that is held with the bank or held with another bank (online, by telephone or on the mobile app).
There is no minimum deposit required to open the account, no minimum deposit needs to be made on a regular basis, and there is no maximum balance limit.
If someone deposited £50,000, there balance after 12 months would be £52,600.00. This is £2,600 worth of interest gained.
To open an account Britons must be a UK resident aged 16 years or over. They will also need an email address and mobile number to open their account.
James Blower, founder of Savings Guru, believes that by offering the account through the Ulster Bank brand, NatWest is looking to attract new customers without having to pay more interest to existing customers.
He says: “We suspect the reason this rate is offered by the Ulster Bank brand is because it will require a separate application for NatWest customers.
“This is likely to be enough to stop huge numbers of them applying for the account, whereas a 5.2 percent NatWest branded savings account will likely see a much higher take up of NatWest customers who would simply transfer over their savings to the higher rate.”
In contrast, Coventry Building Society offers the 5.2 percent also but on deposits as low as £1. It can only be opened online.
People can earn interest monthly as well as annually but it is not as flexible when it comes to access.
Savers can only make three penalty-three withdrawals per year. Savers will lose 50 days’ interest on the amount taken for withdrawals above this allowance.
