Anyone looking for extra help with the cost-of-living crisis could consider switching offers like that offered by NatWest, although you’ll need to wire £1,250 to get it
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NatWest offers £150 to anyone who switches to it – and customers can now also earn 3% interest on up to £150 a month.
The bank will pay £150 to anyone who opens an account using its mobile app before April 7 at 5pm.
To receive the money they will also need to deposit £1,250 into their new NatWest account and log into the app before May 12th.
In addition, NatWest has also sweetened the interest rate on its digital savings account.
This is only open to people who have a NatWest current account and used to pay 3% interest – but only up to £50 a month.
But now the deal pays 3% interest on up to £150 a month.
However, once NatWest savers have accumulated £1,000 in the account, the interest rate drops to 0.25% for balances up to £5,000 and 0.1% for anything above that.
The whopping 3% rate is far better than savers can get from any other regular savings account — the kind of savings deal that rewards people for putting cash away periodically.
Most regular savers are raised by small building societies and not by big companies like NatWest.
Many are designed to help customers develop a saving habit and pay for one-time annual events — like Christmas shopping.
The best interest rate on the open market is 2% from the Saffron Building Society, and savers can only deposit up to £50 a month.
The second best rate is 1.2% from the Furness Building Society, although their customers can deposit up to £250 a month.
NatWest’s 3% savings rate, while welcome, is still outpaced by inflation – which is currently, and could be, above 5% Reach 8% in months.
Inflation is a number that shows the approximate increase in the cost of goods and services.
When inflation is higher than the interest paid on a savings transaction, any cash held in that account loses real money.
That’s because what you can do with that money in the real world goes down faster than the interest it earns.
However, savers should not lose heart as excess cash needs somewhere to be stored and it makes sense to be on the lookout for the best possible deals.
Businesses run by companies regulated by the Financial Services Compensation Scheme (FSCS) are safe havens for excess cash – although this could be scarce due to the Cost of Living Crisis.
This is because the FSCS guarantees that up to £85,000 of a person’s money is protected even if the savings provider goes bust.
https://www.mirror.co.uk/money/savers-can-3-interest-cash-26520738 Savers can get 3% interest on their cash and £150 if they switch banks this week