NatWest Savings Account Review 2026: Rate, Terms and Verdict

What the NatWest Fixed Term Savings Account is, and who it suits

The Fixed Term Savings Account is NatWest’s lock-in savings product. You deposit a lump sum, choose a term of one or two years, and get a guaranteed rate that will not move for the life of the term, regardless of what happens to the Bank of England base rate in the meantime. There are no current account fees, no monthly charges, and no minimum balance beyond the £1 opening deposit.

It suits savers who already have a cash buffer elsewhere and want to lock a slice of it away for a known return, without needing to watch the market or switch providers every few months. It is not the right home for an emergency fund, since your money is inaccessible for the full term without a charge, and it is not designed for savers who want to add money gradually, since only a single deposit is accepted.

The rate: 4.00% AER, fixed for the whole term

The current issue pays 4.00% AER (3.93% gross per annum) on both the one-year and two-year terms, on balances from £1 up to £3,000,000. Because the rate is fixed rather than variable, it will not be cut if the Bank of England lowers its base rate during your term, but it also will not rise if rates go up. Interest is calculated daily and paid out on the first business day of each month, plus a final payment on the maturity date, so it is not all held back until the account closes.

NatWest runs this account as a single issue rather than an always-open product. The 4.00% AER offer quoted here was open for applications until 1 July 2026 for new customers and 6 July 2026 for existing customers, and NatWest can withdraw or replace an issue at any time. If you are reading this after those dates, check the live rate on NatWest’s savings page before applying, since a new issue may carry a different rate.

Deposit limits, top-ups and access during the term

You can open the account with as little as £1 and deposit up to £3,000,000 in a single term. There is no option to top up later: whatever you deposit at opening is the balance that earns interest until maturity. If you want to save more, you would need to open a separate fixed term account for the additional amount, subject to NatWest’s rules on holding multiple fixed term products.

The account cannot be opened in joint names. Only sole applicants aged 16 or over who are UK residents are eligible, so couples wanting to save together will need to use a joint easy-access account instead and treat this as an individual product.

Early closure charge: what it actually costs

If you need your money before the term ends, NatWest requires 35 days’ written notice to close the account early. An early closure charge then applies, calculated as the lower of the interest you have earned so far or 90 days’ interest on the amount withdrawn. NatWest states you will still receive back no less than your original deposit, so the charge cannot eat into your capital, only into interest earned. In practice this means breaking the term early is workable in a genuine emergency, but it will reduce or wipe out the return you were expecting, so the account should only be funded with money you are confident you will not need during the term.

Eligibility and how to apply

You do not need to already hold a NatWest current account to open this savings account. New customers can apply online directly, without first becoming a full NatWest banking customer, though you will need to complete identity verification, typically photo ID plus a selfie match, before the account opens. Existing NatWest customers can apply through the mobile banking app or online banking in a few minutes, since their identity is already verified.

To be eligible you must be at least 16 years old, a UK resident, and applying as a sole applicant. There is no branch application route for this product; it is designed to be opened and managed entirely online or through the app.

Tax on the interest you earn

UK residents get a Personal Savings Allowance on top of their normal income tax bands. Basic-rate (20%) taxpayers can earn up to £1,000 in savings interest a year tax-free; higher-rate (40%) taxpayers get a £500 allowance; additional-rate (45%) taxpayers get no allowance at all. NatWest pays interest gross and reports it to HMRC, so if your total savings interest across all your accounts exceeds your allowance, the excess is taxed at your marginal rate through your tax code or a self-assessment return. Savers who expect to exceed their allowance may prefer to hold part of their fixed-term savings in a cash ISA instead, since NatWest does not offer this specific product as an ISA variant.

How it compares with easy-access alternatives

The trade-off with any fixed-term account is flexibility for certainty. If you think you might need access to your cash, or you want to keep switching to chase the best easy-access rate as the market moves, an instant or easy-access saver from a provider such as Marcus, Chase, or first direct will suit you better than locking in for a year or two. Those accounts let you withdraw at any time with no notice period, though their rates can be cut without warning and, in Marcus’s and Chase’s case, often include an introductory bonus that drops after 12 months.

Where the NatWest Fixed Term Savings Account wins is certainty: once you have opened it, the rate cannot be cut under you for the length of the term, which easy-access savers cannot guarantee. It is best treated as one part of a wider savings plan rather than your only account, sitting alongside an easy-access pot for money you might need at short notice.

Our verdict

The NatWest Fixed Term Savings Account is a straightforward, no-frills way to lock in a competitive rate without needing to already bank with NatWest or pay any fees. The 4.00% AER on the current issue is solid for a mainstream high-street bank, FSCS protection up to £120,000 covers most savers’ balances comfortably, and the online-only application is quick if you have your ID ready. The catches are the ones you would expect from any fixed-term product: no top-ups, no joint accounts, and a real cost to withdrawing early. If you are confident you will not need the money for the full term, it is worth comparing this issue’s rate against other fixed-term and easy-access options before you commit, since NatWest replaces the issue periodically and the rate on offer can change.