NatWest blow as it announces change to accounts ‘within weeks’ | Personal Finance | Finance
NatWest bank has made a major change which impacts savers and is coming in within 2 weeks. The high street giant has written to account holders informing them of the bad news that interest on accounts is set to be cut.
In an email received by customers this week, it said that the decision followed the Bank of England’s decision to cut interest rates to 4.25% after a slowdown in inflation, as the central Bank’s chief welcomed a UK-US trade deal.
Interest rates were cut from 4.5% to their lowest level since May 2023, in their fourth reduction over the past year. The Bank said it reduced the rate – which helps to dictate mortgage rates – after a recent easing of inflation, while it also reduced its inflation forecast for the rest of 2025.
But it also downgraded its economic growth prediction for next year, warning that an escalating global trade war will drag on growth over the next three years. Natwest has now contacted customers and said new lower interest rates come in on May 30.
The message read: “We want to let you know we’re changing the interest rate on your accounts. You may have heard the news that the Bank of England has decided to reduce the base rate. We’ve been looking at our rates too, as well as what’s on offer from other savings providers right now, and we’ve decided to reduce some of our interest rates.”
Customers accused Natwest of going much further than the Bank of England. G said on X: “The Bank of England reduces the base rate by 0.25% and NatWest reduces their savings account by 0.67%. The Banking system in the UK needs major reform.”
Logan added: “Will probably end up leaving you @NatWest_Help My last 5 interest related emails from you have all been “we are reducing interest rates”. It’s barely above 1%. Absolutely pointless.” Stuart said: “@NatWest_Help I have just received my second reduction in as many months of a reduction in saving rates. It’s shameful how you hold the low rates for many months after BE interest rate increase but are very quick to lower them – greedy and. disgraceful behaviour – shame on you.”
Interest rate changes:
Non Payment Accounts
Digital Regular Saver:
Current 6.17% from May 30 5.50% (all AER)
Flexible Saver
Current 1.25% from May 30 1.15%
Savings Builder
Current 2.00% from May 30 1.75%
Cash ISA (Tax-free)
Current 1.40% from May 30 no rate change
Help to Buy ISA (Tax-free)
Current 2.20% from May 30 2.05%
Payment Accounts
First Saver
Current 2.25% from May 30 2.05%
Adapt Account
Current 2.25% from May 30 2.05%
First Reserve
Current 1.25% from May 30 1.15%
Primary Savings
Current 1.25% from May 30 1.15%
For full rundown on all account changes including differing interest rates for different amounts of savings click here.
Earlier this month NatWest revealed its profit jumped by more than a third in recent months as the bank said its customers were “resilient” against “increased global economic uncertainty”.
The boss of the banking group said confidence had dropped among households and businesses but behaviour had not changed.
NatWest Group, which also incorporates Royal Bank of Scotland and Coutts, reported an operating pre-tax profit of £1.8 billion for the first three months of 2025.
This was 36% higher than the £1.3 billion made this time last year and exceeded the expectations of analysts for the quarter.
Income was boosted by customer balances growing, higher lending and more trading activity.
The amount of money deposited by customers increased by £2.1 billion during the quarter, including in current accounts, despite an upsurge in tax payments ahead of the new financial year.
Net loans surged by £3.4 billion, driven by mortgage and business lending as house buyers rushed to complete deals ahead of stamp duty relief being cut from April.
NatWest’s chief executive Paul Thwaite said the bank was expecting to report income at the “upper end” of its guidance for the full year.
“In the face of increased global economic uncertainty, our customers remain resilient and we saw good levels of activity through Q1 (first quarter) 2025,” he said.
