As with many other banks the interest rates you can expect depends on your chosen product. For example, NatWest interest rates on their current account are less than they are on their savings accounts. This is because with a savings account it is expected that you will be keeping your money in there for longer. The longer you keep your money in the bank the more money the bank earn from your cash. That way they can afford to pay out a slightly better rate.
The interest rates on long term loans such as mortgages have been variable over the last few years. The recession and on-going financial crisis have seen banks like NatWest and other lenders become nervous about lending and those they people who have been approved for loans have had to pay a higher rate.
This means households and businesses have seen their monthly loan and mortgage repayments increase. However, the rates on savings accounts and current accounts have dropped. In simple terms your money is earning you less by sitting in a savings account while it is costing you more to have credit.
Peferential Rates for Existing Customers
If you have an account with NatWest already you will be pleased to know that if you need loans, credit cards, and overdrafts or mortgages you will receive preferential rates. However, this does not mean that this is the best deal for you, and you may find that if you shop around you can get a better deal elsewhere, but for those who like to keep all their accounts simple, using the one bank for all of your financial needs is perhaps best.
One of the benefits of using a bank such as NatWest is that they offer a wide range of products, not just bank accounts. Account holders can benefit from discounted home insurance and many other things too.
Talk to Your Bank
Make sure you go into your branch and speak to one of the advisors there. While they will try to steer you towards NatWest products, you can find out a lot more about their interest rates and have them explained carefully. Most NatWest branches are now open later in the day and on Saturdays which is helpful for those who work during the week.
Nat West in the News
Earlier this year, NatWest offered a great deal on e-ISA’s, but the special rates were not available to those who had existing NatWest ISA accounts. This led to many negative reviews of NatWest because loyal customers felt they were missing out. Many customers moved their ISA elsewhere even though NatWest did at the time have the best rates of any other company offering ISA accounts, so even the existing customers were getting a great deal.
Before changing like this it is always worth speaking to an advisor at the branch so that you do not lose too much.
All of the banks are getting a bad press at the moment, it is not just NatWest. This is because of the interest rates, customers are feeling cheated; their monthly income is not going as far as it used to, it is getting harder to stay afloat financially and blaming the banks for the crisis is now par for the course.
Banks have been mismanaged and as a result the public have lost out with some people even losing millions as a result of the recession. People expect their savings to earn them some interest but current NatWest interest rates are a joke and people would be better off investing their money in energy saving measures or even photo voltaic panels for their home than leaving their money in the bank.