NatWest Black

...This concept proved to be NatWest Black – a credit card designed for the higher salary earner.

I have been a customer of NatWest for over thirty years and in general have been more than happy with the service I have received. I am a subscriber to the Advantage Premier Banking service and also access my accounts through the NatWest internet banking site. I discussed this new proposal with my local branch manager as some of the offerings ...
...is NatWest Black all about? It is a credit card that is, as you might have guessed, black in colour. It is aimed at people with a relatively high income (currently £ 70,000 annually). It is by invitation only and attracts a fairly hefty annual fee. In this respect it is in competition with the American Express Centurion Card and the soon to be released Carbon Card from HBOS. So it looks now that whereas all that glitters is not gold and platinum ... more

Over the years I have been bombarded with application forms and invitations to subscribe to yet another credit or charge card. They have come in all colours (green, blue, purple, silver, gold and platinum); they have been decorated with art deco, fish, marbles. Some come from banks and other financial institutions, some from august bodies or charities, some from parties unknown. I have always resisted such blandishments. Why do I need yet another piece of plastic? At the last count I could lay my hands upon fifteen of the things.

Last summer I was approached by my bank to test out my reaction to the introduction of a ‘totally new concept in credit cards’. As ever, I put my rose tinted spectacles over my jaundiced eye view and promised to give it a look. This concept proved to be NatWest Black – a credit card designed for the higher salary earner.

I have been a customer of NatWest for over thirty years and in general have been more than happy with the service I have received. I am a subscriber to the Advantage Premier Banking service and also access my accounts through the NatWest internet banking site. I discussed this new proposal with my local branch manager as some of the offerings did appear to be duplications.

So, what is NatWest Black all about? It is a credit card that is, as you might have guessed, black in colour. It is aimed at people with a relatively high income (currently £ 70,000 annually). It is by invitation only and attracts a fairly hefty annual fee. In this respect it is in competition with the American Express Centurion Card and the soon to be released Carbon Card from HBOS. So it looks now that whereas all that glitters is not gold and platinum is decidedly passé; Black now is the colour.

The NatWest Black system also offers a wide array of incentives. One of their advertising slogans is that the worth of the extras more than compensates for the annual subscription fee. Suffice it to say at this point that I did decide to partake, and these are my early experiences as a Black card holder. I will describe some of the more pertinent features in some depth and then round off by giving a comparison with my other card account.

Black is a Mastercard credit card. By default it has an allocated credit limit (in the order of £15,000). The current interest rate for uncleared balances is 14.9% (APR). Statements are issued at monthly intervals with an anticipation of payment within five to six weeks. Also by default, a minimum payment is expected but it is possible to arrange for the total balance to be cleared on the due date by direct debit from a nominated bank account. The application form is simple enough requiring the usual personal and bank details to enable checking of financial integrity. The form also allows the issuing of up to three subsidiary cards to other nominated people on the same account. My application was processed within six days.

So what are these inducements?

THE CONCIERGE SERVICE.

Black boasts ‘a personal assistant 24 hours a day, 365 days a year’. There is a dedicated local call rate telephone number where you can talk to ‘a real person’ to discuss plans, make arrangements, book accommodations for anything from an exotic foreign holiday to a classical symphony concert. It is also the line that provides full details of the latest travel, political, medical and cultural information of your proposed destination.

There is also a proactive element to this service. If you register an interest in the Ryder Cup, the European Champions League, the Rolling Stones world wide tour, they will search out dates and times and reserve tickets for you.

Black also runs a fine wine club.

TRAVEL INSURANCE.

Like many of the Gold and Platinum offerings, Black has a comprehensive annual travel insurance programme. Coverage is granted to up to five other people (partner, dependent children) travelling with the principal card holder. The range of the coverage is extensive including delays, cancellations and lost luggage. Medical expenses are covered up to a maximum of Euro 7.5 million. There is even cover for lost hire car keys. Insurance cover is routinely granted for all trips up to ninety days in any year.

ROADSIDE ASSISTANCE

Roadside cover is provided for one car in the UK and across Europe in an arrangement with Green Flag. This includes accidents, fire, vandalism and breakdown at home. Legal cover up to £25,000 is provided. Dedicated telephone numbers are given in event of a breakdown at home or abroad.

FIRST CLASS TRAVEL SERVICES.

This is one of the more intriguing advantages. Black provides free membership of the Priority Pass scheme which gives access to over 300 executive lounges in 220 airports worldwide. The welcome pack comes complete with a Priority Membership card and a directory of the available lounges worldwide. Even occasional travellers cannot help but groan at the overcrowded underprovided cramped conditions that prevail at many airports particularly when a flight is delayed. It is only when you become aware of schemes such as this that you start to realise what a hidden world there is behind the facades.

You do have to check which lounge you are heading for as the Priority Pass card will not get you into them all. After presenting the card at the reception desk it is a matter of simply signing in. Each principal card holder has free access. There is a nominal fee payable for guests. Entry times may be limited in some areas. The lounge provides comfortable seating, newspapers and magazines, complementary coffee, soft drinks, snacks and bar. There are toilet facilities and, in some airports, showers. The receptionist keeps track of the progress of your departure.

To date we have ventured into the Cheviot Lounge at Newcastle, the Alexandra Suite at Gatwick, The Delta Club at Tampa and the Intercontinental Lounge at Amsterdam. Each has been a haven of peace. Each has been almost empty.

AIR MILES.

All NatWest cards attract AirMiles on account balances at the rate of 1 mile for every complete £20. Black offers the accelerated collection rate of 1 mile for £15.

WHAT HAS IT COST US?

The annual subscription is £250 for our two card accounts. In comparison the AmEx card is quoted at £650. I am a dedicated AirMiles collector – I usually manage at least two transatlantic flights and one city break trip a year. I have always used a NatWest card for grocery shopping – previously at Sainsburys but now at Tesco since the AirMiles contract was moved. The draw of a fifty percent increase in the rate of collection of miles is very attractive.

I have been an AA member since 1979 but have never had a call out. Last year’s premium was £164. I have now cancelled this membership in favour of Green Flag.

I have checked the subscription rates for Priority Pass on their web site. The Prestige level membership (free admission for the card holder) is quoted at $399 annually – bear in mind that we have been given two of these. Each guest accompanying a card holder is charged $24 per visit.

An annual travel insurance premium for a family of four taken out independently probably costs in the order of £100.

As yet I have not explored the Concierge service to any extent. However, overall, I believe that the benefits will continue to heavily outweigh the costs.

If I had been expecting red carpets unfurled, trumpets blaring, sales assistants swooning whenever I got my new card out, I would have been sadly disappointed. There was never a flicker of appreciation that here was something new … something - well, to be appreciated. In practice a credit card is a credit card – if it validates when it is passed through the till then your money (or credit) is just as good as anyone else’s. My wife and I have now largely abandoned our other NatWest cards in favour of Black – purely because of the increased allocation of AirMiles.

A QUICK COMPARISON WITH NATWEST PREMIER BANKING.

As I said at the outset I am an Advantage Premier customer. The following is a list of the areas where the two accounts overlap and differ. I will publish a review of this account shortly.

FEATURES SIMILAR OR IN COMMON:

Annual Travel Insurance, Concierge service, Card protection service, Extended warranty on household purchases, Travel services, Wine Club, Commission free foreign currency, Access available from internet banking.

OTHER MAJOR DIFFERENCES (B=Black; A=Advantage)

Bank Account with Gold charge card(A); Credit Card (B)
Theoretically no spending limit (A); Limited (B)
Personal Banking Manager (A): access to a wide range of financial services; None (B)
Current account, cheque book, service card (A); None (B)
Arranged cheap overdraft (A); None (B)
Extensive ring binder benefit book, Leisure guide (free entry and discount vouchers); Restaurant guide with 25% off (A); Welcome booklet (B)
Car Hire Insurance (A); None (B)
Access to Stock Broker services (A); None (B)

 

...less