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NatWest to Cut Savings Rates on Jan. 19 as Experts Urge Savers to Switch for Better Returns

Consumer advocates urge savers to look beyond high-street names to capture far higher returns.

Overview

  • NatWest will lower rates on several savings products on 19 January, including Digital Regular Saver to 5.25% and Flexible Saver to 1.0%, after notifying customers by email.
  • The bank cited the Bank of England’s base-rate reduction to 3.75% as context for the changes, with wider reviews of savings rates underway.
  • Which? warns the average high-street instant-access rate near 1.15% AER can leave more than £300 a year on the table on £10,000 versus top accounts around 4.48% AER, with online providers such as Chase and Cahoot among recent leaders.
  • Experts advise checking FSCS protection up to £120,000 per provider and tracking maturities and bonus expiries, noting examples like Chase’s 12‑month bonus that later reduces the rate.
  • Guidance highlights tax planning using ISAs and personal savings allowances, with a cut to the cash ISA limit for under‑65s to £12,000 taking effect from 2027.