Simple trick to get a best buy easy-access savings account of 5.2% with NatWest

NatWest is now offering a best buy 5.2 per cent easy-access deal through its Ulster Bank arm.

Though the account is branded as a ‘loyalty saver’ it is open to new and existing customers, and the account can only be opened online, unless you are based in Northern Ireland.

Savers get the top rate on balances over £5,000 or more – less than this means a lower rate.

This is because the interest on this account is tiered based on how much is tucked away.

That’s more like it: Saves can open an account with NatWest’s Ulster Bank arm to get a 5.2% easy-access deal

On balances over £5,000 savers get the full 5.2 per cent rate – including on the first £5,000 – but on balances between £1 to £4,999 the interest rate is a far less generous 2.25 per cent.

Another boon to the account is that it is unlimited access, unlike some that limit the number of withdrawals over the course of the year. 

High street banks been abysmally slow to pass the Bank of England’s rate rises on to savers, with some still paying rates only slightly higher than 1.5 per cent.

The best rate you can get on an easy-access account with NatWest is just 1.75 per cent with the flexible saver. 

So the Ulster Bank loyalty saver is a way savers can get a best buy easy-access account from a high street bank. 

On a £20,000 pot, that’s the difference between £1,065 interest compared to just £353 on the regular dud NatWest deal, an interest gap of more than £700.

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 per cent 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.’ 

Last month, Santander offered a 5.2 per cent easy-access rate which was pulled early because of demand.  

Coventry Building society also has a 5.2 per cent easy-access deal, but it is not strictly easy access as you are only allowed three withdrawals in each 12 month period from the date the account is opened.

To open NatWest’s 5.2 per cent easy-access account, you just need to be a UK resident over 16.

Savers looking to open a joint account will only be able to open one if they are living in Northern Ireland though.

Ulster Bank is part of NatWest Group and the Financial Services Compensation Scheme protection for money deposited with Ulster Bank in Northern Ireland is shared across deposits held with NatWest. 

So if you hold money in an Ulster Bank account and a NatWest account, your money will be protected up to a total of £85,000, not two separate protections. 

RBS has its own FSCS protection. 

Blower explains:  ‘Ulster Bank and NatWest share the same bank licence for the purposes of FSCS cover.

‘The main thing for savers looking at the Ulster Bank account to be conscious of is if they have savings already with NatWest and to make sure they keep below £85,000 per person with both banks, as they won’t be protected if they put, for example, £85,000 with Ulster and have £85,000 with NatWest.’