Simple trick to get an easy access 5.2% Best Buy savings account with NatWest

NatWest is now offering a Best Buy offer with 5.2 per cent Easy Access through its Ulster Bank branch.

Although the account is labeled as a “Loyalty Savings Account”, it is open to new and existing customers and can only be opened online unless you are based in Northern Ireland.

Savers get the highest interest rate on balances of £5,000 or more – less means a lower interest rate.

This is because the interest on this account is staggered depending on the amount of funds invested.

This is more like this: Saves can open an account with NatWest’s Ulster Bank division to get a 5.2 per cent easy access offer

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

Another advantage of the account is that it offers unlimited access, unlike other accounts that limit the number of withdrawals throughout the year.

The major banks are only very slowly passing on the Bank of England’s interest rate increases to savers, with some still paying interest rates that are just over 1.5 percent.

The best interest rate you can get on an easy access account with NatWest is just 1.75 per cent with Flexible Saver.

So the Ulster Bank Loyalty Saver is a way for savers to get an easy access Best Buy account with a major bank.

On a £20,000 pot, that’s the difference between £1,065 in interest and just £353 on the regular 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 wants to attract new customers without having to pay more interest to existing customers.

He said: “We suspect this tariff is offered by the Ulster Bank brand because a separate application is required for NatWest customers.”

“This is likely to be enough to deter a large number of them from applying for the account, whereas a 5.2 per cent NatWest-branded savings account is likely to see much higher demand from NatWest customers simply using their savings would be transferred to the higher interest rate.” ‘

Last month Santander offered a 5.2 percent easy access tariff, but it was withdrawn early due to demand.

Coventry Building Society also offers a 5.2 per cent Easy Access deal, however this is not necessarily an Easy Access deal as in each 12 month period from the date of account opening you only allowed to make three withdrawals.

To open NatWest’s 5.2% Easy Access account, you simply need to be over 16 and a UK resident.

However, savers who want to open a joint account can only open one if they live in Northern Ireland.

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

So if you hold money in an Ulster Bank account and a NatWest account, your money is 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 banking license for the purposes of FSCS coverage.”

“Savers looking at the Ulster Bank account should pay particular attention to whether they already have savings with NatWest and ensure they stay under £85,000 per person at both banks as they will not be protected if they have the following do: for example £85,000 at Ulster and £85,000 at NatWest.’