NatWest offers new customers £150 and 7% savings rate if they meet rules

NatWest is offering new customers £150 cash and a 7% interest rate on savings. This is a popular offer as banks compete for new clients.
By Newsroom | Finance, UK |

Banks are currently engaging in competitive practices to draw in new clients. NatWest has introduced a financial incentive package for individuals switching to their bank. This offer includes a cash bonus and a high-interest savings account, but access to these benefits is contingent on meeting certain requirements. The timing of such offers often aligns with periods after holidays, when financial institutions typically aim to attract customers by presenting appealing deals.

Context of NatWest's Customer Acquisition Strategy

NatWest has initiated a campaign to attract new customers. The core of this offer involves two main components:

NatWest launches new 7% interest savings account for customers - on one condition - 1

  • Cash Incentive: New customers can receive £150.

  • Savings Account: A Digital Regular Saver account is available with a 7% interest rate.

To qualify for these benefits, customers must undertake the following actions:

  • Switch to a Select or Reward current account with NatWest.

  • Deposit a minimum of £1,250 into the new account.

  • Use the NatWest app within the first two months of switching.

Upon meeting these conditions, customers are eligible to open the Digital Regular Saver account. This account offers a 7% AER (Annual Equivalent Rate) for 12 months. The Digital Regular Saver requires customers to have an existing NatWest bank account.

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Details of the 7% Savings Rate

The 7% AER on the Digital Regular Saver account is structured as follows:

  • A base rate of 5.25% AER (variable) on balances up to £5,000.

  • An additional 1.75% fixed bonus rate for 12 months.

Interest is calculated daily and paid monthly on the first business day of the month. This tiered interest structure means that the higher bonus rate is applied to balances within a specified limit. While the 7% rate is advertised as a "bonus savings rate," it is conditional and applies for a fixed period of 12 months. NatWest also offers other savings accounts, such as Fixed Term Savings Accounts where money is locked away for a chosen term, and Instant Access accounts that allow immediate withdrawal of funds.

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Conditions and Limitations for New Customers

The £150 cash boost and the 7% savings rate are not universally available. Eligibility is tied to specific actions and account types:

  • Account Types: The offer is linked to switching to the Select or Reward current accounts. Other current accounts, like the Student or Foundation accounts, may not be part of this specific promotion.

  • Deposit Requirement: A minimum deposit of £1,250 is mandated.

  • App Usage: Active use of the NatWest app is a condition.

  • Digital Regular Saver: This account is only accessible after the initial switching criteria are met and requires an existing NatWest bank account.

  • Variable Rates: The base interest rate on the savings account is variable, meaning it can change over time. The bonus rate, however, is fixed for the 12-month period.

  • Expert Advice: Industry observers suggest that customers should carefully examine account fees, overdraft rates, and minimum funding rules when considering bank switching offers. Repeatedly switching accounts might also affect a customer's credit profile.

Bank Competition and Switching Offers

The NatWest offer is part of a broader trend in the banking sector. Banks and building societies often launch campaigns at the start of the year to attract new customers. These incentives are designed to encourage customers to move their accounts from rival institutions. Other banks, such as Nationwide and Co-op, are also offering cash incentives for switching. These switching bonuses can be a quick financial gain for customers who carefully review the terms and conditions.

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Expert Perspectives on Switching Deals

Financial commentators note that while switching offers can be profitable, it is crucial for consumers to understand the full implications.

  • “For organised customers who can meet the criteria, switching bonuses can be easy money.” However, they also advise:

  • “Experts warn to check: Monthly account fees, Overdraft interest rates, Minimum funding rules, Whether perks are genuinely useful.”

The advice emphasizes that careful consideration of the fine print is essential to ensure the offer is truly beneficial.

Conclusion and Next Steps

NatWest is offering a significant incentive package to new customers, comprising a £150 cash bonus and a 7% interest rate on a Digital Regular Saver account. However, these benefits are conditional upon opening specific current accounts, meeting a deposit threshold, and utilizing the bank's mobile app. The 7% savings rate includes a variable base rate and a fixed bonus, applicable for 12 months on balances up to £5,000.

For potential customers:

  • Review Eligibility: Ensure all conditions for the £150 bonus and savings account access are met.

  • Understand Account Terms: Familiarize yourself with the variable nature of the base interest rate and any potential fees associated with the current or savings accounts.

  • Consider Long-Term Value: Evaluate if the account features and ongoing rates align with long-term savings goals beyond the initial 12-month bonus period.

  • Compare Offers: Assess how this deal compares to other bank switching incentives in the market, taking into account all associated terms.

The offer reflects an aggressive competitive landscape among financial institutions aiming to grow their customer base through attractive, albeit conditional, incentives.

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Frequently Asked Questions

Q: What is NatWest offering new customers in January 2024?
NatWest is giving new customers £150 cash and a 7% interest rate on a Digital Regular Saver account. This offer aims to attract more people to switch their bank accounts.
Q: How can new customers get the £150 from NatWest?
To get the £150, new customers must switch to a NatWest Select or Reward current account. They also need to deposit at least £1,250 into the new account and use the NatWest app within two months.
Q: What are the details of the 7% savings account from NatWest?
The 7% interest rate is on NatWest's Digital Regular Saver account and lasts for 12 months. It includes a 5.25% variable rate and a 1.75% fixed bonus rate, and is available on balances up to £5,000.
Q: Are there any special conditions for the 7% savings account?
Yes, customers must first meet the conditions for the £150 offer, like switching to a specific current account and depositing £1,250. The 7% rate is also only for 12 months and applies to balances up to £5,000.
Q: Why are banks like NatWest offering these deals now?
Banks often offer these deals, especially after holidays, to attract new customers. It's a way to compete with other banks like Nationwide and Co-op that also have similar switching offers.
Q: What should people check before switching banks for an offer?
Experts advise checking monthly account fees, overdraft interest rates, and minimum funding rules. It's important to make sure the offer is truly useful and not just a short-term gain.