Martin Lewis offers advice on savings and interest rates
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RBS is well-known on Britain’s high streets and millions flock to the bank each year, however, its latest offering could prove the most enticing. Unfortunately, interest rates have not been the strongest within the last year – and this is primarily attributable to the Bank of England’s base rate decision. First initiated in March 2020, the central bank has chosen to keep its base rate at 0.1 percent ever since.
This decision has had a catastrophic impact on interest rates and those who are hoping to increase their funds.
However, for customers of RBS, there is an option which could help them circumvent, at least somewhat, the poor interest rate offerings at the moment.
The bank’s Digital Regular Saver account is described as the “go-to account” for Britons who wish to build their savings habit.
Exclusively for RBS current account customers, the Digital Regular Saver is offering an impressive interest rate.
At present, the account is offering an interest rate of three percent gross, at 3.04 percent AER per annum.
The healthy interest rate can be earned on balances a saver keeps in the account up to £1,000.
While the interest rate is variable, it is one of the most attractive out there at present, and individuals will be given at least 14 days notice if this changes.
Each month, Britons will be required to set up a standing order to regularly pay anywhere between £1 to £50 into the account.
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This can be adjusted or increased, but savers should bear the maximum deposit amount of £50 in mind.
However, while the savings rate is a big draw of this account, a further incentive is offered with a limited time to benefit.
In March, RBS is offering savers a chance to clinch a £1,000 cash prize if they use the Digital Regular Saver.
To be in with a chance to win, Britons will need to have opened their account before 17:30 on March 31.
They must then pay in between £1 to £50 in the months of April, May and June.
RBS has revealed there are 10 prizes of £1,000 each being offered to savers in England, Scotland and Wales.
It is anticipated the lucky winners will be announced in July, and they could see their savings habit get a significant boost.
To be eligible for the Digital Regular Saver from RBS one must be a current account holder with the bank aged 18 or over.
The account can be opened online or through RBS’ mobile app, and managed in the same way, but also through branch or by telephone.
A person can only have one Digital Regular Saver and it will need to be in their sole name, with joint accounts not permitted.
If a person changes their mind and decides to close the account, they will not earn interest for the month of closure.
One of the key benefits of the RBS offering aside from the interest rate is that it is an easy access account.
This means savers will be able to withdraw their money at any time through online banking, the mobile app, in branch or via the telephone.
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