Bank of Scotland has introduced a new savings account offering a fixed 8% Annual Equivalent Rate (AER), enabling eligible customers to earn up to £120 in interest over a 12-month period. The Monthly Saver account allows savers to deposit between £25 and £250 each month, with the maximum monthly deposit of £250 resulting in total contributions of £3,000 and interest earnings of £120, leaving a final balance of £3,120 upon maturity.
Exclusive to Current Account Holders
The account is available exclusively to Bank of Scotland current account holders and is designed to encourage regular saving rather than lump-sum deposits. Unlike many fixed-term accounts, customers can withdraw funds if needed, though early withdrawals may reduce the interest earned. To qualify for the 8% AER, deposits must be made by the 25th of each month.
How the Account Works
At the end of the 12-month term, interest is added to the account, which then automatically converts into an Instant Access Savings Account. Customers can immediately open another Monthly Saver to continue saving at the higher rate. Simon Caddick, Savings Director at Bank of Scotland, stated: "Our new Monthly Saver is one of many ways we reward our customers for having their day-to-day banking with us – we've also got £100 cashback, amongst other perks, available for our student account customers. We mean it when we say we want customers to feel like they're getting something back when they bank and save with us."
Eligibility Criteria
To open the account, customers must have a Bank of Scotland current account, be aged 16 or over, be UK residents, and not have opened another Bank of Scotland Monthly Saver within the previous 12 months. Key features include saving between £25 and £250 each month, earning a fixed 8% AER for the first 12 months, and the option to withdraw money if needed, although this may reduce interest.
Market Context
The launch comes as households seek better returns on savings after a prolonged period of higher interest rates. Regular saver accounts typically offer higher rates than standard easy-access accounts but limit monthly deposits, targeting those building savings gradually rather than investing a lump sum.
