NatWest Announces Major Savings Rate Cuts Impacting Millions
Banking giant NatWest has confirmed a substantial reduction in interest rates across several of its popular savings accounts, a move that will directly affect millions of customers across the United Kingdom. This decision marks the latest in a series of rate cuts within the banking sector, significantly diminishing the potential returns savers can achieve over the coming year.
Affected Accounts and New Rates
The rate reductions will apply to NatWest's First Saver, Adapt Account, First Reserve, and Primary Savings accounts, effective from March 6, 2026. Following these changes, interest rates on these products could plummet to as low as 1%, a figure that stands in stark contrast to the more competitive offerings available elsewhere in the market.
For context, Chase Bank is currently providing a market-leading rate of 4.5% on its savings products, illustrating the considerable gap that now exists. This disparity highlights a pressing opportunity for consumers to reassess their financial arrangements and potentially secure significantly better growth for their cash reserves.
Expert Advice for Savers
Personal finance experts are urging customers not to accept these diminished returns out of loyalty to their current bank. Kate Steere, a personal finance expert at Finder, emphasised the financial impact of staying put. "Savers shouldn’t settle for a worse deal out of a sense of loyalty to their current provider," she stated.
To quantify the difference, Steere provided a clear example: "With the average UK savings pot (£19,214), if you kept your savings with one of the new, lower rates, such as an account earning 1.25%, you’d end up with just £240 in interest after a year. Meanwhile, a market-leading rate of 4.5% from Chase would mean £864 in interest, a significant difference of over £600."
Alternative Savings Options
For those looking to maximise their returns before the end of the tax year, several competitive alternatives are available. Steere pointed to specific products, noting: "If you’ve got some of your ISA allowance to use before April, the 'eToro by Moneyfarm' Cash ISA is a very competitive option at 4.49% AER for the first 12 months, while both Plum and Moneybox have announced boosted rates of 4.36% and 4.39% respectively for new cash ISA customers."
This development serves as a crucial reminder for households to actively manage their savings. By simply transferring funds to an account with a superior interest rate, individuals could bolster their annual finances by hundreds of pounds, turning a passive saving strategy into an active financial decision.
