NatWest’s 3% interest savings account: How does it compare?

5 min Read Published: 28 Jan 2022

Natwest savings ratesNatWest is currently offering an attractive 3% interest rate on its Digital Regular Saver, overtaking much of the competition and defying historically low savings rates. We take a look at what the account has to offer, how it measures up to other regular savers, and what’s going on in the wider savings market.

NatWest Digital Regular Saver

The NatWest Digital Regular Saver is a variable rate regular savings account which pays 3% interest on balances up to £1,000, making it one of the best options for savers looking to make their money go further.

Eligibility

You must be 18 years or older, a UK resident and have an existing NatWest current account.

Interest

Balances up to £1,000 will receive 3% interest. Balances over £1,000 will receive 0.01% interest. Interest is paid directly into the account on a monthly basis. Beware that the interest rate is variable and may change at NatWest’s discretion.

Deposits

There is no minimum deposit to open the account but you need to set up a standing order from an existing NatWest current account of between £1 and £50 each calendar month. You cannot pay in more than £50 each month.

Withdrawals

There are no withdrawal limits. Any withdrawals are processed instantly and without charges.

What is a regular savings account?

A regular savings account is a type of savings account in which interest is calculated based on the balance in the account each month. They come with both fixed and variable interest rates. There is typically a limit on how much you can put into a regular savings account every month, and most accounts expire after 12 months, at which point it is closed and the balance is transferred to an easy access account by the same provider. You have the option to open another regular savings account and start again if you wish. Interest is usually paid either monthly or after 12 months.

How does the Digital Regular Saver compare?

The Digital Regular Saver is one of the best regular savings accounts on the market at the moment. The table below shows how it compares to the competition, including interest rates and maximum monthly deposits.

Account Type Interest Rate Maximum Monthly Deposit Minimum Monthly Deposit Interest Paid
Cambridge Building Society’s Extra Reward Regular Saver Fixed 5.00% £250 £0 After 1 year
NatWest’s Digital Regular Saver Variable 3.00% on balances up to £1,000; 0.01% on balances over £1,000 £50 £1 Monthly
Nationwide’s Flex Regular Saver Variable 2.00% on up to 3 withdrawals per year; 0.35% on 4 or more withdrawals per year £200 £0 After 1 year
TSB’s Monthly Saver Fixed 2.00% on balances up to £1,500; 0.00% on balances over £1,500 £125 £25 After 1 year
Coventry Building Society’s Regular Saver (5) Variable 1.05% £500 £1 After 1 year

What is happening to savings rates?

Savings rates in the UK are currently undergoing some significant changes following the Bank of England’s decision to raise the base interest rate from 0.10% to 0.25% in December 2021. Until then, most high street banks had only been offering rates around 0.10%, and high-interest accounts were few and far between.

However, since the base rate has risen, we have already started to see higher rates trickle down into the wider savings market. Providers of all different account types - from easy access to notice - have been gradually hiking rates over the past few weeks. In particular, fixed rate ISAs have changed for the better, with UBL offering some of the best rates at up to 1.76% on its 5 Year Fixed Rate Cash ISA. Meanwhile, OakNorth Bank has raised its 12 Month Fixed Rate Cash ISA by 0.10% to reach 0.96%.

There have also been some new introductions to the savings market. SAGA launched the competitive Easy Access Savings Account paying 0.60%, including a bonus 0.10% for 12 months, while Yorkshire Building Society has opened Make Me A Saver which comes with the opportunity to win 1 of its 10 £1,500 prizes each month.

To stay up to date with the latest on the savings market, keep an eye on our savings best buy tables, where we round up the best of every savings account in the UK every single week.