NatWest increases interest rate of fixed savings account – get up to 5.9%

NatWest has boosted its position on the table of fixed cash ISAs with an interest rate of 5.7 percent.

Following 13 consecutive base rate rises, banks and building societies have been extending the rise on their savings accounts to entice savers to switch.

Cash ISAs come with a number of additional benefits, such as enabling savers’ money to grow without having to pay tax on the interest above the Personal Savings Allowance (PSA).

ISAs that offer a fixed rate of interest can also help add another layer of certainty to saving, as it means the bank or building society cannot change the rate during the length of the term.

With inflation sitting at 7.9 percent, Britons are encouraged to get the best rate possible on their savings.

NatWest has increased the rate on its 1 Year Fixed Rate ISA this week, which now pays 5.7 percent.

The minimum deposit needed to open this account is £1,000.

If someone’s balance remained at £1,000 for the entirety of the fixed term, they would earn £57.00 in interest bringing their total to £1,057.00.

To open an account, savers must be aged 16 years or over and a resident in the UK.

Commenting on the deal, Rachel Springall, finance expert at Moneyfactscompare.co.uk, said: “NatWest has increased the rate on its 1 Year Fixed Rate ISA this week, which now pays 5.70 percent.

“The deal takes a more prominent position within its sector against its peers and may well attract savers who plan to use their tax-free ISA allowance.

“Savers who are happy to lock their cash away until 2024 can make further additions until a certain date, which may appeal to those who may have extra cash to invest or transfer in.

“Overall, the deal earns an Excellent Moneyfacts product rating.”

Britons can open an account online, via its mobile app or by phone.

It should be noted only current account holders can open this account by telephone.

The account can be managed in branch and by phone. The fixed term starts on September 4, 2023.

New customers have until August 9 to open an account, and existing members have until August 14.

For those willing to lock their money away for longer, NatWest’s 2-year issue 327 offers 5.9 percent on balances up to the ISA limit of £20,000 this tax year. The minimum deposit is £1,000.

For more information, Britons can visit the NatWest website.