NatWest launches 3.51% ISA
NatWest has launched two new ISAs paying interest at up to 3.51%.
Its online e-ISA, which accepts balance transfers from ISA savings in previous tax years, pays an AER of 3.25% on balances up to £9,999, and 3.51% on balances over £10,000.
The bank asserts that this top rate makes it the most competitive online-only ISA in the UK market – a claim confirmed by price comparison site moneyfacts.co.uk.
“This account does look to be the highest-paying ISA to accept transfers,” said moneyfacts.co.uk analyst Darren Cook.
NatWest’s new cash ISA pays a variable rate, currently set at 3.51% and paid on a monthly basis.
NatWest has pledged that the account will not pay less than the base rate (currently 1%) until at least 1 February 2010.
Transfers from previous tax years are not accepted, so the maximum amount that can be placed into the account is £3,600 every tax year.
To open the cash ISA, customers must already have a NatWest current account or instant access savings account. Customers with an Advantage Gold or Private account will be paid an extra 0.5% on the cash ISA, pushing the overall rate up to 4.01%.