NatWest is offering a 4.5 per cent interest rate: NatWest offers a competitive interest rate to cash ISA investors with a two-year investment horizon.
The monthly increase in savings account interest rates is primarily attributable to successive Bank of England Base Rate rises, which began early last year to combat the UK’s spiralling inflation rate.
Fixed cash ISAs have been providing investors with especially high returns, with many offering rates of at least 4.5%.
NatWest’s Two Year Fixed Rate ISA (Issue 323) offers an Annual Equivalent Rate (AER) of 4.5 percent, and investors can open an account with as little as £1,000.
Cash Individual Savings Accounts (ISAs) offer additional advantages over traditional savings accounts, such as tax-free growth of interest above the Personal Savings Allowance (PSA).
Cash Individual Savings Accounts (ISAs) that offer a fixed interest rate also add a layer of certainty to savings. It indicates that the bank or building society cannot alter the interest rate during the term, which is advantageous for account holders who intend to save for a long period of time.
However, they may include additional restrictions, such as fees for early access or transfers.
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NatWest is offering a 4.5 per cent interest rate on cash ISA
The NatWest Two Year Fixed Rate ISA (Issue 323) can be opened by UK residents aged 16 or older online, in a branch, or over the phone; however, only one account can be created in a single name. Daily interest is calculated and paid to the ISA annually on the first business day of April and on the maturity date.
However, if an investor wishes to withdraw funds prior to maturity, they must terminate their account and pay an Early Closure Fee. This will equal either the “lower of the amount of interest earned” or a fee equal to 90 days’ interest.
The offer is only valid for new customers until 5 p.m. on June 14, 2023, and for existing customers until 5 p.m. on June 19, 2023.
Despite the fact that NatWest offers savers more competitive returns, the deal is presently the best on the market. Moneyfactscompare.co.uk reports that UBL UK’s Two Year Fixed Rate Cash ISA has the highest AER at 4.65 per cent.
Residents of the United Kingdom aged 18 or older can establish the account with a minimum deposit of £2,000.
Interest is accrued at the maturity of the account term, but early withdrawals are prohibited and incur a 180-day interest penalty. Additionally, Close Brothers Savings offers a 4.65% AER on its Two Year Fixed Rate Cash ISA.
The account can be established with a minimum deposit of £10,000 by UK residents aged 18 or older. Interest is calculated annually, but identical to UBL, early access will incur a fee equal to 150 days of interest.
