RBS / NatWest rewards accounts

Has anyone looked at these?

Their basic rewards account gives you £3 back per month for having two direct debits and using their app (costs £2, you get £2 for each of two direct debits, and £1 for logging in each month).

But this can be combined with their rewards credit card which forgoes a £24 yearly fee if you have a rewards current account. That gives you 1% back ok super market shopping and 0.25% back on fuel (and everything else).

Taking this one step further. There rewards silver account is £10 a month, gives you the same as the standard one plus Europe travel insurance and mobile phone insurance, cinema discount as well if that’s your thing.

That makes it £5 a month, with the cash back from the credit card they say people get an average of £50 a year back, I calculated my likely usage at £22 a year. Let’s sound up for simplicity to 24. Is an extra £2 a month bring in that account to £3 a month.

Curious how £3 a month works out in comparison for mobile insurance and travel insurance?

At the very least the basic rewards account and 1% back on the credit card for free essentially is a better deal than Barclays offer for example.

I think these convoluted rewards products are an abomination, frankly. If you really have to sit down with a calculator, and even then you can only approximately work out your annual spend, then it’s more hassle than it’s worth.

Some perhaps? To be fair this one is fairly simple. You get £5 a month for some direct debits and that 1% back on super market shopping.

It used to be more complicated before as I understand they used to give a % back on certain bills, so you actually did have to calculate it.

I don’t think they strictly design it specifically get get their rewards accounts for free as you can get more value potentially swapping the cash back for vouchers.

It is though an interesting incentive to use their accounts over others. Amex does it, Barclays as well. Others to I believe though I don’t know how well they work out.

I pay £31 per month for my rewards account, but I receive £10 back for 2x direct debits and 1x use of mobile app during the month.

I find the £21 worth it for Greenflag (used it a couple times) and the mobile phone insurance. The travel insurance isn’t much use at the moment, but it’s quite comprehensive! All in, I find it good value.

I’m sure you must already be aware of this, but £31 a month is a truly horrendous charge to pay monthly for an account. Even with the £10 a month back for two direct debits. It’s just too much in my opinion.

My Wife and I have a Nationwide packaged account and we pay £13 a month. It used to be incredible value when we were getting almost £7 a month in credit interest on our account and offsetting that against the monthly charge.

We both have our own cars, so the breakdown cover is there as a peace of mind thing. We’ve never claimed on mobile insurance, but we do both have iPhone XR’s, so if we did lose or have stolen our phone’s, then I guess we could make a claim if needs be. Travel insurance is the biggy for us, but unfortunately, they have since changed the terms and conditions around diving, i.e. I can no longer dive deeper than 18 metres without taking out hazardous insurance cover. I now buy DAN dive insurance and use that to cover my diving instead.

If Nationwide increase their packaged account further, we’ll drop it, CASS the account and end our relationship with them, probably to Starling as a Joint account. I can stomach £13 a month at the moment.

For a second i thought it was a legacy account but i see which one it is now.

For £21 it comes with a number of extra benefits (its a black account) including airport lounge access, concierge service, UK & Europe breakdown cover.

On top of that its world wide travel insurance, travel discounts (no idea how competitive these are), no non-sterling fees (less competitive these days with other options available now). Also mobile insurance, home emergency service (up to £750 for repairs), 40% off cinema tickets, and 25% of other event tickets.

Even something as simple as seeing a movie once a month is potentially a significant save

Additionally if they have it paired with a credit card they will receive cashback (1% at super markets, 0.5% (black cc) on all other spends. A very conservative spend on the card chops another £2.25 a month of the cost of the account.

I suppose its a case of balancing how much you utilise these services.

I concede that £21 could represent good value as long as one was actually making use of the services associated with the cost. So I would definitely have to be making use of the lounge access and the other niceties to warrant paying that monthly amount.

Of course the problem with most packaged accounts, is that a lot of people who pay for the monthly cost, never actually use any of the services. At least with Nationwide, I do travel abroad longhaul a few times a year (ok, not this year for obvious reasons!}, so the travel insurance aspect alone is worth the monthly fee if I needed to claim on it. The other 2 components, well nice to haves if they’re needed.

It requires a minimum income of £100k a year, if you have that much income yearly I doubt £31 a month is a dent at all and they’d have the money to use those benefits quite liberally, while RBS makes a chunk off of lending that money

I dont see the point of these packages accounts. None of them add value above having individual accounts.
Breakdown cover is available for £70 a year (or £60ish if added to your car insurance).
My annual multi trip travel insurance is £35 a year.
Mobile phone insurance is pointless as house contents insurance covers it.

For you perhaps

If your contents insurance covers mobile phones outside of the house. Which not all policies do, you need to make sure personal possessions cover is added to your policy and to the appropriate value and covers what you need e.g world wide or just U.K.

Your examples of travel insurance and breakdown cover already puts you at £105 a year, £10 a month.

For £15 a month you can get (as an example), Europe and world wide travel insurance, mobile insurance & U.K. breakdown cover among a few other things.

So it’s very much dependent on your needs. Not everyone needs or wants a concierge service and airport lounge access.

For £13 a month with Nationwide you can get:

  • Your phone covered, your wife’s phone covered, your kids phones covered. Globally. Reasonable excess, no requirement to register phones beforehand + theft/loss is covered :slight_smile:
  • Your entire family covered globally for travel insurance + no requirement to be next to the policy holder the entire time
  • Breakdown assistance throughout the entirety of the EU, even if it’s not your car, even if it’s not you driving (presuming said vehicle is UK reigstered)
  • And they axe the general legacy bank’s FX fees, making it viable for being your only account

I’d say that is pretty outstanding, for £13 a month.

Yeah i think it’s one of the best around as far as I’m aware? I’ve considered it myself except that I already have breakdown cover this year. Do you know who their breakdown cover company is?

To be fair, I think you can get breakdown cover cheaper than that if you shop around.

I’m not sure how old you are, but once you get past the age of 50, insurance tends to be more expensive than when you’re in your 30’s as an example. I looked at Worldwide multi trip insurance for myself and my Wife on some of the comparison sites, and Nationwide still represented value for money for a middle aged couple taking the types of long haul holidays that we go on.

Depends on your insurance provider and how much you’re willing to part with for annual cover as to whether your phone is covered. I would imagine that not every single household policy covers mobile phone damage or loss/theft outside of the home environment without paying extra on the premium. Personally, I’ve never lost, had stolen or broken a phone in the 1/4 century I’ve owned one, so actually from my perspective, mobile phone insurance is wasted on me anyway.

Nationwide’s packaged account insurance was when I and my Wife initially subscribed, outstanding value. But of course the monthly premium increased and as I said earlier, sports such as diving have now been impacted by changes Nationwide made in November 2019 which has forced me to take out stand alone dive insurance because their standard cover is no longer suitable.

I rather stupidly forgot that I frequent a forum with some quite wealthy contributors. At the end of the day, if people want to pay for those services and get the benefits, then that is all that matters. I personally could neither afford or justify paying 30 quid or more a month for a packaged account.

Covid 19 may well prove the ending of my relationship with Nationwide from a packaged account perspective. Our travel abroad has undoubtedly been curtailed for at least the next 12 months. Our cars are sat on the driveway at home barely covering 10 miles a week, down from the usual 300 miles a week, so the chances of breaking down have diminished. But then both of our vehicles are well maintained and regularly serviced, so even breakdown cover is probably not required. Mind you, I wouldn’t want to break down on the M1 at 11pm and be stranded without suitable cover.

We haven’t cancelled our Nationwide packaged account because we’ve got two more long haul holidays booked this year which we’re now fairly certain, won’t now happen. They were booked pre-Covid so the terms of insurance under which they were booked at the time, still apply. Everything is up for review.

Ask them. Amex for example have been offering money back and other incentives for customers who have been unable to utilise benefits on paid accounts.

Here’s the FCA draft guidance.

Yes, I’m aware of Amex doubling rewards etc:

As for Nationwide, personally, I can’t see them offering refunds on packaged accounts entirely from the perspective I’ve already mentioned. We’ve still got holidays booked and so (although unlikely) they might have to pay out, so there’s no real justification to give people in my situation, any form of refund.

But I guess, unless you ask, you don’t get.

That’s my view. The answer isn’t no until you ask. I’d also be considering wording it as a discount over a refund. You don’t want to stop using it, you just can’t use it right now.

Britannia part of LV:

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I’ve just been trawling through some of the breakdown cover prices offered by some of the well known providers. Nationwide’s packaged account covering two vehicles is good value in my opinion.

Consider also that if you have a car older than 10 years, (my car is 12 years old), there can be an additional premium. I’ve owned my car from new and it’s broken down twice, both times in the first 3 years when it was still under warranty. It hasn’t coughed on me since in the last 9 years. My Wife has had four new cars in that time and none of them have broken down. Insurance, you either love it or hate it, but I guess if you need it, it’s useful.

I’ve just received a text message from RBS informing me they’ll be paying me my final £50 switching bonus at the end of this month. So, £175 in total for doing nothing except for switching a fairly dormant account and spending once a month on my debit card for 12 months. I probably wouldn’t have earned anywhere near that amount in any savings interest if I had a savings account.