RBS and NatWest balance the needs of borrowers and savers

Following the Bank of England's announcement to reduce base rate to 0.50%, NatWest and RBS will ensure they balance the need of borrowers and savers.

Mortgages

Customers holding one of the Banks Flexible mortgages will see their rates reduced by 0.25% from 1 March 2009 and SVR will be maintained at its current competitive rate of 4.00%. The majority of NatWest and RBS' mortgage customers have a tracker or fixed rate mortgage, and will therefore either benefit in full from the 0.50% MPC base rate cut, or already have a competitive fixed deal. The average effect of these changes is to reduce mortgage rates by 0.27%.

Savings

Any reduction in savings rates will be, on average, less than 0.20% with many of our key savings accounts maintaining their current rates. In particular, NatWest and RBS offer some of the most competitive instant access ISAs on the market, with rates up to 4.01% AER*.

Paul Geddes, Chief Executive, RBS Retail Banking, commented: "The continued downward trend to Bank of England base rate has had a significant impact on customer savings rates. It is more important than ever to consider both our savings and mortgage customers when determining any rate changes."