Royal Bank of Scotland is launching a new savings account with the highest rate of interest to be introduced by a UK bank this year. The new Digital Regular Saver account offers a market leading interest rate of 3%.

It is designed to help customers with little or no savings develop a savings habit and unlike other regular savings accounts does not expire after a year. The account is more flexible too, allowing for withdrawals to be made without the need to close the account. Customers will be able to save between £1 to £50 a month and will need to set up a standing order at account opening. Interest is paid monthly with the top rate of 3% interest paid on balances of up to £1000.

In the months following the initial Covid-19 lockdown over 400,000 customers grew their savings to £100 or more for the first-time. The bank is aiming to help an additional 2 million customers to start saving by 2023 and increase financial capability.

Lewis Broadie, Royal Bank Savings Expert said: “During lockdown many of our customers started to save for the first time. We are introducing the new Digital Regular Saver to help our customers start and maintain a long-term savings habit which will help them to become more financially secure.”

Royal Bank also offers a range of savings tools to help customers save. Such as the Savings Goal tool in the bank’s mobile app and a new feature called Spending which helps customers to budget. Customers switching their main bank account will also receive £100.

The new Digital Regular Saver Account can be opened through the Royal Bank of Scotland mobile app or online at www.rbs.co.uk/savings