DRN-6285232

The complaint Mr E complains that NATIONAL WESTMINSTER BANK PUBLIC LIMITED COMPANY applied an incorrect interest rate to a newly opened Individual Savings Account (ISA). What happened In October 2025, Mr E completed an on-line ISA transfer application for a NatWest 2-year Fixed Rate ISA (Issue No. 385). He says the advertised interest rate was 4.2%. But when the account had been opened, he found the interest rate was 4%. Mr E complained to NatWest as he had deposited a substantial sum of money which was now earning less interest than he’d expected. NatWest didn’t agree that it had done anything wrong regarding the interest rate. It said the advertised rate for the 2-year Fixed Rate ISA (Issue No. 385) was 4%. It explained that it was its 1-year Fixed Rate ISA (Issue no. 384) which had an advertised interest rate of 4.2%. But it acknowledged that, when Mr E first contacted it, his complaint wasn’t set up as it should have been. And it paid Mr E £70 compensation - £50 for the distress and inconvenience caused and £20 to cover any expenses Mr E had incurred. Mr E was unhappy with NatWest’s response, so he referred his complaint to this service. One of our investigators looked into what had happened, but she said she had independently checked NatWest’s advertised interest rates and found the interest rate for the 2-year Fixed Rate ISA Mr E had applied for was 4.0%. Mr E disagreed saying – in summary, that he was certain the screens he saw when applying for the ISA said the interest rate was 4.2%. And that he feels something was wrong with NatWest’s website. He asked if NatWest would change his 2-year Fixed Rate ISA to the 1-year Fixed Rate ISA as a resolution to the complaint. The investigator put this request to NatWest, but it maintained that the correct interest rate had been applied to the ISA Mr E had opened. And, as the investigator had already found the correct interest rate had been applied, she didn’t change the outcome she had reached. Mr E asked for an Ombudsman to review the complaint. So, it’s been passed to me to decide. What I’ve decided – and why I’ve considered all the available evidence and arguments to decide what’s fair and reasonable in the circumstances of this complaint. Having done so, while I’m sorry to disappoint Mr E as his strength of feeling about this matter is clear, I’ve reached the same overall conclusion as the investigator. I’ll explain why.

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Mr E feels strongly that this service should be able to view the screens he saw and completed when he opened the ISA. And NatWest has provided copies of his ISA transfer application form that Mr E completed on-line. But I’m satisfied the on-line application itself doesn’t make any reference to the applicable interest rate. So, I’ve considered what else is available. Although the ISA interest rates referred to in this complaint are no longer available, it is possible to view the NatWest website as it would have appeared in October 2025 by using an online service known as the ‘Wayback Machine’. This is an independent internet archive which takes snapshots of how various businesses websites looked at particular moments in time. I can see that the investigator has already provided Mr E with a link to this website. But, for completeness, I’ve included the link again here: https://web.archive.org/web/20251008144334/https:/www.natwest.com/savings/isa- overview/fixed-isa.html. This archive service has allowed me to view NatWest’s Fixed Rate ISA information as it would have appeared in October 2025 when Mr E applied for the 2-year Fixed Rate ISA. And, having done so, I agree with Mr E that the headline rate shown is 4.20% AER. So, I think this is what Mr E saw. However, in the text relating to the interest rates it goes on to say: ‘See your savings grow with our 1 year Fixed Rate ISA at 4.2% AER/tax-free p.a. (fixed). 2- year fixed rate option available at alternative rates’. I’ve then viewed the information under the section ‘Fixed ISA rates’. And under the heading ‘what is the interest rate? it says: Term Balance AER/Tax-free p.a. (fixed) 1 year issue 384 +£1,000 4.2% 2 year issue 385 +£1,000 4.0% I don’t doubt that Mr E believed he had opened a 2-year Fixed Rate ISA paying 4.2% having seen the headline interest rate. But when considering the independently obtained information set out above, I’m persuaded that NatWest provided sufficient information about its Fixed Rate ISA interest rates for Mr E to have been reasonably aware that the 2-year option offered a different interest rate to that of the 1-year option. So, I’m not persuaded that there was a problem with NatWest’s website or that it did anything wrong in applying the rate applicable interest rate to the 2-year fixed rate ISA Mr E applied for. It seems that there was a delay in NatWest properly actioning Mr E’s complaint when he first contacted it. And I’ve seen that NatWest has paid Mr E £70 compensation for the delay in setting up the complaint and the inconvenience this caused. While answering customer complaints is something businesses are required to do, it’s not a regulated activity. So, not an activity in itself covered by this service. But for completeness, I’ve considered the compensation award paid by NatWest and I think overall its fair. Mr E was ultimately able to submit his complaint, and he received a final response allowing him to refer the complaint to this service for an independent review. Given the above, it follows that I won’t be telling NatWest to take any further action in respect of this complaint. My final decision For the reasons given above, I do not uphold this complaint. Under the rules of the Financial Ombudsman Service, I’m required to ask Mr E to accept or

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reject my decision before 26 May 2026. Sandra Greene Ombudsman

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