NatWest Slashes Interest Rates on Key Savings Accounts

NatWest has announced significant interest rate cuts on several of its popular savings accounts, affecting millions of customers starting March 6. The move reduces rates on accounts such as the First Saver, Adapt Account, First Reserve, and Primary Savings to as low as 1%, a sharp decline from previous offerings.

This reduction means customers will earn substantially less on their savings. For example, keeping the average UK savings balance of £19,214 in an account with a 1.25% interest rate would yield just £240 after one year. In contrast, other banks are offering far more competitive rates—Chase, for instance, currently provides a market-leading 4.5%, resulting in £864 in interest on the same balance, more than triple NatWest’s return.

Personal finance expert Kate Steere from Finder advises savers not to remain loyal to their existing bank if it means accepting lower returns. She encourages exploring other high-yield options, especially for those with spare ISA allowance before the tax year ends in April. Competitors like eToro by Moneyfarm offer a competitive Cash ISA rate of 4.49% AER for the first 12 months. Meanwhile, fintech platforms Plum and Moneybox have also increased their Cash ISA rates to 4.36% and 4.39%, respectively.

Given these changes, NatWest customers should consider shopping around to maximize their savings, potentially boosting their returns significantly by switching to better-performing accounts.