Overview
- NatWest is promoting a step-up plan that saves £10 in January and increases by £10 each month, reaching £780 by December.
- Banks and consumer groups say many households still lack a financial cushion after the cost-of-living crisis, leaving them vulnerable to unexpected bills.
- Inflation is reported at 3.2% while many easy-access accounts pay about 1–2%, which erodes the real value of cash holdings.
- Regulators warn that thin savings push people toward overdrafts, credit cards and buy-now-pay-later products that can become costly if balances persist.
- Advisers suggest matching the challenge with suitable accounts, using easy-access for flexibility, regular savers for higher monthly rates, and fixed-rate or cash ISAs for those who can lock funds and seek inflation-beating returns.