NWG Stock Today: January 24 Saga-NatWest 4% Savings Fuels Deposit Race
NatWest share price is in focus today as Saga’s Easy Access Savings Account, offered with NatWest, advertises 4.00% AER including a 1.25% 12-month bonus. This sharpens competition across UK savings rates that could shift the deposit mix, funding costs, and net interest margin. We assess what this means for NWG, how saver switching and the higher FSCS 120,000 protection might steer flows, and what to watch before results on 13 February 2026. The key question is whether pricing pressure caps margin upside or keeps retail balances resilient.
Saga 4% account and saver behaviour
Saga’s Easy Access Savings Account markets a 4.00% AER that includes a 1.25% bonus for the first 12 months. After the bonus ends, the rate reverts to the variable headline rate. The offer is designed to attract new cash while promoting flexibility. For product details and saver tips, see Saga’s guidance here: Make your savings work harder in 2026.
Bonus-led rates often spark balance shifting as customers chase higher returns. The FT’s reader Q&A highlights the higher FSCS 120,000 protection, which can encourage savers to spread cash across banks, intensifying competition across retail books. That raises acquisition costs and retention efforts. Read the discussion here: Ask an Expert with Claer Barrett — How to organise your finances for the year ahead.
Implications for NatWest deposits and margin
Promotional easy-access balances typically pay more than non-interest-bearing current accounts. If funds migrate toward promotional pots, the average cost of deposits rises and can compress net interest margin. The bonus component front-loads costs in year one. If this drives material mix shifts, investors may reassess earnings power, which can sway the NatWest share price near term.
Two paths stand out. Strong inflows with high retention could stabilise balances but lift funding costs. Modest inflows with churn would limit cost pressure but reduce volume benefits. Management’s guidance will likely hinge on UK savings rates, behavioural decay of bonus balances, and hedging. We will watch commentary at the 13 February 2026 results for clarity.
Market view, valuation, and ratings
Income-focused investors may note a dividend yield around 3.6% TTM and a price-to-book near 0.62, suggesting a discount to equity value. Shares have risen about 64.8% over one year, improving sentiment. The mix of income and capital return depends on buybacks and earnings resilience if deposit costs rise through 2026.
Street views are balanced: 4 Buy, 4 Hold, 1 Sell, implying a Hold-leaning consensus. Our system grade is B+ with a buy tilt, but positioning varies by risk appetite. The 13 February 2026 print at 07:00 UK time should update net interest margin, deposit beta, and capital return plans that inform the NatWest share price trajectory.
Price action and key technical levels
Technicals are mixed. RSI sits near 51.9, a neutral read. MACD histogram is slightly negative at -0.09, while CCI at -115 indicates oversold conditions. Stochastic %K near 18 suggests weak momentum. Bollinger Bands are around 16.59 to 18.13 with a middle near 17.36, and ATR of 0.32 signals moderate day-to-day moves.
Clear catalysts include deposit pricing updates, net interest income guidance, and any changes to savings bonuses. Macro drivers matter too, such as Bank of England rate expectations and shifts in UK savings rates. Stronger capital returns or resilient deposit retention could support the trend, while rising deposit beta would likely weigh on sentiment.
Final Thoughts
Saga’s 4.00% AER Easy Access with a 1.25% 12-month bonus confirms a more competitive UK savings market. The higher FSCS 120,000 protection may encourage savers to spread cash, lifting acquisition and retention costs. For investors, the key is how these offers affect NatWest’s deposit mix and net interest margin over 2026. Ahead of 13 February results, focus on guidance for deposit beta, easy-access growth versus current accounts, and any planned changes to promotional rates. Also track capital returns and credit quality. If funding costs rise modestly and balances hold, that could support earnings. A sharper mix shift would pressure margin and temper the NatWest share price.
FAQs
How could Saga’s 4% account affect the NatWest share price?
Higher promotional rates can shift balances into more expensive easy-access deposits, lifting funding costs and squeezing net interest margin. If deposit retention stays strong, earnings could hold up. If deposit beta rises faster than expected, margin pressure may weigh on sentiment and the NatWest share price.
What is FSCS 120,000 protection and who benefits?
FSCS 120,000 protection is the cash guarantee per authorised bank for eligible UK depositors. It protects money if a bank fails, within the limit. Savers with large balances benefit by splitting funds across institutions to stay below the cap, which can increase switching and competition for deposits.
Is NatWest stock attractive for income investors?
Income investors may value a dividend yield around 3.6% TTM alongside potential buybacks, subject to earnings and capital headroom. The appeal depends on how deposit costs evolve and whether management maintains payout capacity. Stable margins and credit performance would help support the dividend over time.
What should investors watch at NatWest’s 13 February 2026 results?
Watch net interest margin guidance, deposit beta, and commentary on easy-access growth versus current accounts. Look for updates on pricing strategy, bonus expiries, and retention rates. Capital returns, costs, and credit trends will also shape the outlook and the NatWest share price reaction.
Disclaimer:
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.
