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NatWest Invest: Just five funds offered, but ultra-low service fees and robo-advice makes this my top-rated high street bank for investing

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infoMore info
This is the score our team have awarded the platform based on our own personal experiences and other important factors, such as fees and ease of use.

4.0out of 5

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NatWest is one of the major four UK banks. The NatWest Group also includes Royal Bank of Scotland, Coutts, and Ulster Bank. NatWest Invest offers a stocks and shares ISA, Junior ISA, and general investment account.

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By Clare West

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4.0out of 5

Clare's view

The Verdict

Average Success Rate

11.1%

infoNatwest Invest 5-Year Avg
The following dataset includes the performances of ready-made portfolios/funds offered by investment platforms and may include both actively and passively managed ready-made portfolios/funds. Performance indicated is also net of all fees to 31st January 2024, unless stated otherwise; any tiered fee structure will be disclosed. Ready-made portfolios/funds that include cryptocurrencies or any other securities outside cash and equities are not included in the dataset. The dataset only includes ready-made portfolios/funds which are explicitly advertised by their respective platforms as being for ‘beginners’, and which are exclusively offered by the platform itself. Funds which are managed by other providers and may be identically offered across multiple platforms were not included in this dataset. For example, the Vanguard UK All Share Acc. ETF was offered by Plum, but as it is not directly managed by Plum and customers could reasonably access it on multiple platforms, it was not included for the purposes of this research. Other discretely advertised securities or investments are not included.

10.6%

infoIndustry avg.
The industry average is the median average of all fund/ready-made portfolio performance figures we collated from 23 investment providers. To see the full dataset, visit X page.
NatWest's investment service is known as NatWest Invest. It's a simple - and remarkably cheap - way to get into investing if you're an existing NatWest customer, or you're willing to open a NatWest current account to access the investments.

A quick note here - whatever I say about NatWest Invest in this review applies to RBS Invest too, as RBS is a NatWest Group subsidiary and runs an identical investment service as far as I can see.

For a very low annual fee of 0.15-0.05% (determined by your portfolio value), your investments are managed for you and you gain access to five risk-rated, ready-made portfolios. With just five portfolios, you're getting a very limited choice. However, this approach makes sense for anyone who might feel overwhelmed by the thousands of different funds, and individual stocks and shares offered by providers such as Fidelity, Hargreaves Lansdown, or AJ Bell. This is a pared down offering, from a famous name, so could simultaneously provide peace of mind and easy entry into investing.

As there are just five funds on offer, the question of fund performance becomes important. Unfortunately, we don't have much historical data on NatWest's ready-made portfolios on which to make any judgement, as the five ready-made portfolios currently offered by NatWest have only been in existence for a short time. It should also, of course, be remembered that past performance does not guarantee future performance in any case. However, should you be interested in how well the funds offered by NatWest have performed so far, and how their results compare with competitors', we have compiled complete datasets here.

The headline is that they're not doing too well so far, falling far below the industry 1-year average of 13.8%, with returns of just 4.7% on average. However, I would caution strongly against basing any decision on 1 year's worth of returns, as investing is intended to be viewed through a long-term lens - at least 5 years.

The platform itself is modern, well-designed, and intuitive, and information on the different funds is helpful and clear. For those looking for more help understanding the most suitable path to take, NatWest also offers an automated advice service, which is very well-priced at just £10.

All-in-all, I'm impressed with NatWest's investment offering. Its heads and shoulders above many of the other banks. That said, it will only be a viable solution for those happy to go for a ready-made portfolio: investors wanting a more bespoke portfolio, including individual stocks, bonds, funds or ETFs, will need to look elsewhere.
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quote

Pros

  • Very low annual fees - 0.15%
  • Fund fees no higher than 0.40%
  • Simple choice of five funds
  • Investments managed by Coutts
  • Automated advice service for just £10
quote

Cons

  • Choice of just five funds will be too limiting for some investors
  • Fund performance is falling behind industry average in first full year of results
  • Cash ISA interest rates are poor
  • Customer service should be made easier to access
  • Transfers of CTFs to a Junior ISA not accepted for children 14+
  • Verdict4.0
  • Ready-made Portfolio
  • Fees4.5
  • Trading Platform5.0
  • Research3.5
  • Safety5.0
  • Education2.0
  • Customer Service2.5
  • Portfolio View

Clare's view

Who do I recommend it for?

Average Success Rate

11.1%

infoNatwest Invest 5-Year Avg
The following dataset includes the performances of ready-made portfolios/funds offered by investment platforms and may include both actively and passively managed ready-made portfolios/funds. Performance indicated is also net of all fees to 31st January 2024, unless stated otherwise; any tiered fee structure will be disclosed. Ready-made portfolios/funds that include cryptocurrencies or any other securities outside cash and equities are not included in the dataset. The dataset only includes ready-made portfolios/funds which are explicitly advertised by their respective platforms as being for ‘beginners’, and which are exclusively offered by the platform itself. Funds which are managed by other providers and may be identically offered across multiple platforms were not included in this dataset. For example, the Vanguard UK All Share Acc. ETF was offered by Plum, but as it is not directly managed by Plum and customers could reasonably access it on multiple platforms, it was not included for the purposes of this research. Other discretely advertised securities or investments are not included.

10.6%

info Industry avg.
The industry average is the median average of all fund/ready-made portfolio performance figures we collated from 23 investment providers. To see the full dataset, visit X page.
arrow-down-orangeRead More
quote

Pros

  • Very low annual fees - 0.15%
  • Fund fees no higher than 0.40%
  • Simple choice of five funds
  • Investments managed by Coutts
  • Automated advice service for just £10
quote

Cons

  • Choice of just five funds will be too limiting for some investors
  • Fund performance is falling behind industry average in first full year of results
  • Cash ISA interest rates are poor
  • Customer service should be made easier to access
  • Transfers of CTFs to a Junior ISA not accepted for children 14+
  • arrowVerdict
    4.0
  • arrowReady-made Portfolio:
  • arrow Fees:
    4.5
  • arrowTrading Platform:
    5.0
  • arrowResearch:
    3.5
  • arrowSafety:
    5.0
  • arrowEducation:
    2.0
  • arrowCustomer Service:
    2.5
  • arrowPortfolio View

update-icon

Updates

Who do I recommend NatWest Invest for?


  • Existing NatWest customers looking for a relatively low-cost and simple entry into investing

Account types and assets


Stocks and shares ISA

An investment ISA (Individual Savings Account) is an investment account with a ‘tax wrapper' around it, protecting all your holdings and returns from income tax and Capital Gains Tax. (By contrast, a general investment account does not have these protections.) The government sets limits on how much can be saved into an ISA every year. In the tax year 2024/25, the annual allowance is £20,000.

Some investment ISAs are described as ‘flexible' meaning you can withdraw and repay your cash without it being counted twice towards your annual allowance. NatWest's ISA is not, however, a ‘flexible' ISA.

Junior ISA

A junior self-invested personal pension (SIPP) is a way of investing money for your child’s future retirement, free from capital gains and dividend tax. As it is designed to be started before a child turns 18, it must be opened by a parent or guardian although anyone can contribute. Once the beneficiary turns 18, they take control of the account, however, the money within the account cannot usually be accessed until age 55 (rising to 57 in 2028 and likely to rise further)Junior ISAsinfo allow you to invest (or save, if is a cash Junior ISA rather than an investment junior ISA) up to £9,000 per year. This NatWest JISA is a stocks and shares (investment) ISA.

JISAs must be opened by a parent or legal guardian, although anyone can make contributions into a child's JISA. When the beneficiary reaches 18, ownership of the JISA transfers to them. The NatWest Junior ISA accepts transfers from other Junior ISAs as well as Child Trust Funds (CTFs). However, as I discovered, while NatWest does accept CTF transfers from other providers, it only accepts them for children born before 2009. I have never come across this before and I'm not quite sure why this would be the case as the cohort of children who received government CTFs stretched from 1 September 2002 until 2 January 2011. But it makes this JISA a no-go if your child is 14+.

Cash ISA

Offered by NatWest rather than NatWest Invest, the cash ISA offers a disappointing rate of interest – currently 1.59% on savings up to £25,000 and 2.96% AER on balances over £25,000 – and is certainly not competitive when compared to the top payers, although credit where credit's due, it's better than most other high street banks as you can see here:

Visit our Best Cash ISA page for all the top rates.

Lifetime ISA

NatWest does not offer a Lifetime ISAs (Individual Savings Accounts) (LISAs) are designed to help you save for your first home or retirement and come with an automatic 25% government bonus on all contributions up to the value of £4,000. There are stocks and shares LISAs – where you invest your savings – and cash LISAs – where you earn interest on your savings. You must be between 18 and 40 to open a LISA and all income, capital gains and interest earned within LISAs is tax-free, although these funds can only be used to purchase your first home or for retirement. Ensure you are familiar with the rules surrounding this account before utilising itLifetime ISAinfo at this time.

Assets

NatWest offers a choice of five ready-made portfolios known as ‘Personal Portfolio Funds', which are a mixture of funds selected by professional investment managers at Coutts, and which are designed to align with the following different risk profiles:

  • Defensive
  • Cautious
  • Balanced
  • Ambitious
  • Adventurous

You cannot add individual stocks and shares, funds or ETFs – the portfolios are complete solution, designed to take away the fear factor of selecting investments. There is also help, in the form of a robo-advice service costing just £10, to choose the portfolio that is best suited to your goals and risk profile.

As these funds were only launched in July 2023, we do not have a great deal of data on which to assess their historical performance. However existing customers are likely to be pleased with first full-year averages coming just above the industry averages. For more details, visit our Ready-made portfolio performance page.

Fees


NatWest Investing makes the following charges:

Platform fee

The platform fee varies depending on how much you invest:

  • Up to £1m = 0.15%
  • £1m – £5m = 0.10%
  • £5m+ = 0.05%
  • These figures are highly competitive. To my knowledge, the only other platforms that offer a top end fee of just 0.15% are Vanguard and AJ Bell's beginner's brand, Dodl. Some other platforms do offer zero service fees on certain amounts over £500k, so if your portfolio falls in this category, it's a good idea to review your other options. AJ Bell, for example, charges no service fees on amounts over £500k, and Hargreaves Lansdown, does not charge service fees on amounts over £2m.

    You can pay your platform fee directly from your investment or from a Royal Bank of Scotland bank account.

    Fund fees

    The fund fee is taken directly from the fund on a daily basis by the fund manager, and varies according to which fund you choose to invest in.

    Minimum deposit

    You can start investing with £50, or opt for a monthly top-up from as little as £10.

Awards


FAQs

Yes, NatWest is considered to be a very safe place to hold money and investments. It is authorised and regulated by the Financial Conduct Authority and your deposits are covered by the Financial Services Compensation Scheme (FSCS) meaning that you could be entitled to compensation of up to £85,000 in the very unlikely event that NatWest was so go out of business.

NatWest is the cheapest of all the big banks we've analysed. It's annual fee of just 0.15% is far lower than Barclays' 0.25% and

No, the stocks and shares ISA offered by NatWest is not flexible. That means, if you withdraw money you've deposited in your ISA and intend to repay it again within the same tax year, it will count twice towards your annual allowance. Ideally, ISA investments should be seen as long-term investments, however, rather than savings accounts you withdraw from regularly.

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