Partially upheld: misleading information about savings account opening process and interest complaint against National Westminster Bank Public Limited Company
Financial Ombudsman decision DRN-6158604 of 2026-06-08T00:00:00+00:00. misleading information about savings account opening process and interest complaint against National Westminster Bank Public Limited Company. Outcome: Partially upheld.
Decision detail
| Reference | DRN-6158604 |
|---|---|
| Decision date | 2026-06-08T00:00:00+00:00 |
| Firm | National Westminster Bank Public Limited Company |
| Product | Savings / ISA |
| Claim type | misleading information about savings account opening process and interest |
| Outcome | Partially upheld |
| Remedy | NatWest required to pay total compensation of £250 to Mrs C (£100 already paid, further £150 required). No interest on the savings account to be paid. |
Summary
Mrs C visited a NatWest branch in June 2024 intending to open a fixed rate savings account and transferred £200,000 to her current account. An information sheet provided stated the account could only be opened online or via mobile app, but Mrs C did not complete any account opening steps. The funds remained in her current account earning no interest for over a year while she was abroad. NatWest initially accepted responsibility and offered to pay interest, but later refused when Mrs C claimed £8,709.14. The ombudsman found NatWest did not actively mislead Mrs C about the account opening process, as the information sheet was clear and no documentation was signed. However, the complaint was upheld in part because NatWest's initial response created a false expectation, causing distress. Compensation of £250 was ordered.
The Ombudsman's reasoning
The ombudsman found that while a misunderstanding occurred, NatWest did not actively mislead Mrs C. The information sheet clearly stated the account could only be opened online or via app, not in branch. Mrs C did not complete any account paperwork or take follow-up steps to open the savings account. The ombudsman concluded that NatWest would not have been responsible for the outcome even if it had sent further communications, as Mrs C was not accessing her online banking during the extended period abroad. However, the ombudsman upheld the complaint in part because NatWest's initial response to the complaint created a false expectation that it would pay the interest, causing Mrs C distress when this position was reversed.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| National Westminster Bank Public Limited Company, all decisions | 1,179 | 14% |
| Savings / ISA, all decisions | 7,604 | 22% |
Source
Read the original decision on the Financial Ombudsman Service website