RBS is offering a three percent interest rate on savings – are you eligible for account?

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Bank of England hikes interest rates to 0.5%

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The rate is offered on the bank’s Digital Regular Saver, which has been dubbed their “go-to account” for building savings. When the account is opened, savers set up a standing order to regularly pay a sum into the account each month.

This can range from £1 up to £50 per month.

It’s possible to adjust the standing order, or top up the total monthly contributions – as long as this doesn’t exceed the maximum £50 each month.

This interest rate applies only to a certain balance in the account, however.

The three percent gross/3.04 percent p.a (variable) rate is paid on balances between £1 and £1,000.

For any balance over £1,000, there’s a lower interest rate applied on that portion of savings.

Currently, that stands at 0.01 percent gross/AER p.a. (variable).

Interest is calculated on a daily basis and it’s paid into the account on the first business day of the month, RBS said.

As the interest rate is variable, it is possible for the bank to change the amount it pays.

On its website, RBS assures customers with a balance of £100 or month that they will get at least 14 days’ notice if the rates are going down.

Otherwise, savers will be told before or shortly after the change, the bank states.

Savers can use the Round Ups tool, which automatically rounds purchases up to the nearest £1 and puts the money into a savings account.

Any money added from Round Ups won’t count towards the £50 per calendar month limit, RBS confirmed.

Who is eligible for the Digital Regular Saver?

To open the account, the person must be aged 18 years or over and a UK resident.

They must also be a Royal Bank of Scotland current account holder.

It’s possible to open the account online of through the bank’s mobile app.

There are several ways to manage the account – by mobile app, online, in branch or by telephone.

Savers can only have one Digital Regular Saver, and this must be in their own name.

Joint accounts are not permitted, customers should note.

With this account, withdrawals are permitted at any time.

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