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NatWest has increased interest rates again and savers can now get 3.25 percent rate | Personal Finance | Finance

The rate of interest of three.25 % gross p.a (variable)/3.30 % AER p.a. (variable) applies to financial savings between £1 and £1,000 within the account. The rate of interest then drops for financial savings exceeding this threshold.

For the a part of the stability between £1,001 and £5,000, the speed is 0.30 %, dropping to 0.10 % for sums over £5,000, right on the time of writing.

The financial institution calculates curiosity each day.

Will probably be paid into the account on the primary enterprise day of the month.

These charges have elevated lately. In March, NatWest confirmed the charges for balances between £1 and £1,000 stood at three % gross p.a (variable)/3.04 % AER p.a (variable).

Earlier this 12 months, any sum over £1,000 was topic to a 0.01 % rate of interest.

From March 15, nevertheless, this elevated to 0.25 % – however just for balances between £1,001 to £5,000, as a brand new rate of interest tier was added.

Something over £5,000 was nonetheless topic to the 0.01 % charge at the moment.

To qualify for the account, an individual should be a UK resident, aged 16 or older, and a NatWest present account holder.

It is necessary to notice there’s a restrict on how a lot could be paid into the account every month.

The restrict is £150 per calendar month – together with the standing order and any additional month paid in, however not counting cash from the Spherical Ups device.

This most sum elevated on March 16 this 12 months, having beforehand been set at £50 per 30 days.

If an individual deposited £150 per 30 days, after 12 months the stability would attain £1,825.58.

Earlier this month, the central financial institution’s Financial Coverage Committee (MPC) introduced a 0.25 % rise to the Financial institution Charge, taking it to 1 %.

This enhance took rates of interest to their highest degree for 13 years.

Becky O’Connor, Head of Pensions and Financial savings, interactive investor, mentioned on the time: “People with cash savings have been losing money in real terms for some time, in more than a decade of low interest rates.

“Some savings rates will now rise, but not all – and certainly not all in line with the base rate rise. For those wanting to keep money in cash, the good news is you might get at least some reward, the bad news is you will really have to hunt for the best rates around and accept that inflation will most likely still be eroding your returns for some time to come.

“If you don’t need the money for a few years, investing might offer higher returns. But there are caveats, as higher rates and high inflation are affecting investment returns in different ways, too.”

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