29th September 2023

Demand for fixed savings rates soars-NatWest

The number of customers opening Fixed Term savings accounts has rocketed. As many as 17 times more accounts are being opened compared to in the first half of 2019 according to data released by NatWest. The number of accounts opened in the first half of 2019 was 4,700 which has dramatically increased to over 82,000 in the first half of this year.

NatWest increased interest on a one year fixed term account to 5.56% AER. For higher balances over £100,000 this increases to 5.60% AER. The bank also offers a Digital Regular Saver that pays 6.17% AER on balances up to £5000.

The average age of customers opening fixed rate savings accounts is decreasing. As more younger customers take advantage of better savings rates, the average age has dropped from 60 in 2020 to 57 in 2023.

Scotland is one of the top areas in the UK for account openings along with London and the South East of England. However, the highest rate of growth for account opens is being seen in Wales and the North East of England with the volume of accounts being opened in those areas 30 times higher than it was three years ago. In the first half of 2019, 146 accounts were opened in Wales which increased to 3195 in the first half of this year.

Lewis Broadie, NatWest savings expert said:

“Customers are taking advantage of our increased rates and saving more than ever in our Fixed Term accounts.”

NatWest Trends(302 articles)