Royal Bank of Scotland
Screenshot of Savings Home Page Royal Bank of Scotland

A savings account is that first step consumers take to make a difference to their financial situation. The account provides a separate savings pocket that allows them to safely build their savings without worrying about accidentally using it. Furthermore, savings accounts often provide amazing benefits that often add bursts of growth. Royal Bank of Scotland Savings Accounts offers a number of options. This review takes a closer look to see how it compares to its peers.

What To look For In A Good Savings Account

Savings accounts are convenient accounts specifically designed to make the savings process a little easier. They offer interest and sometimes even bonuses to help boost those savings and allow consumers to rely a little less on debt to get them through tough times.

A good savings account is the one that motivates customers to save. It should be easy to open and the opening deposit shouldn’t be too high. This will allow customers from all walks of life to participate in savings.

Furthermore, savings accounts that carry fees should also grant customers with full transactional capabilities or only charge the fees on items that are even outside the norms of current accounts. This is to ensure that customers use the account for savings and that the account fees don’t eat into their capital.

Savings plans that offer fixed terms, should provide customers with all the information required to make an informed decision. This includes the interest rate, the term, and whether there is penalty interest on early withdrawals. Ideally, term accounts should penalty interest as these accounts should encourage customers to save their funds for a fixed period of time.

Find out here how the Ally Bank Savings Accounts compare.

About Royal Bank of Scotland

Royal Bank of Scotland
Screenshot of the History of Royal Bank of Scotland

Royal Bank of Scotland or RBS found its roots in the 1700s. It worked hard to establish a solid banking foundation and within a short time, became a household name. Throughout the 1800s and 1900s, RBS was known for its ability to provide its customers with cutting-edge products.

The financial crisis in 2008 hit the bank hard and it’s still trying to recover from the financial blow. Cost cutting initiatives were sorely needed as the bank experienced dwindling profits. The bank, like so many of its peers, had to rely on governments bailout to prevent them from closing doors.

Currently, the bank is working hard to recover its reputation and once again become a bank of choice.

Royal Bank of Scotland Savings Accounts Product Offerings

Royal Bank of Scotland
Screenshot of Savings Accounts Royal Bank of Scotland

Instant Saver

Customers who wish to have a simple account that allows them to do a few basic transactions will find this account suitable. Furthermore, the account provides interest on positive balances.

  • Customers can save as much as they wish to with this account.
  • This account allows single or joint accounts.
  • Furthermore, the account provides customers with a cash card that gives them access to all ATMs 24 hours a day.
  • The account interest is paid on a monthly basis.
  • The interest rate on the account is variable. Furthermore, those who have balances over £50,000 qualify for higher interest rates.
  • Customers over the age of 16 are eligible to open the account.
  • Finally, the account requires a minimum opening deposit of £1.

Instant Access ISA

This account is suitable for customers who wish to have access to an instant savings account and not pay any taxes.

  • This account provides customers with a tax-free savings within the annual limit.
  • Furthermore, the interest rate is paid annually and those who qualify for bonus interest will receive this monthly.
  • The bonus condition is that customers pay a minimum amount into their ISA by a certain date.
  • There are no fees payable on this account.
  • The interest rate is variable and those with balances over £25,000 will earn a higher rate.
  • Also, customers are required to open the account with a minimum of £1.
  • The bonus period lasts for a period only and certain conditions apply.

Fixed Rate ISA

This account provides customers with a free fixed-interest rate. Furthermore, customers earn their interest without having to worry about paying tax.

  • Customers will have access to tax-free savings within the annual limit.
  • Also, they will know exactly how much interest they’ll earn in advance.
  • Furthermore, this account is ideal for those who wish to leave their funds untouched while they save.
  • The interest on the account is paid annually.
  • Customers enjoy a fixed term of 1 or 2 years. Those who have balances of £25,000 and more will earn a higher rate.
  • The account requires a minimum opening balance of £1,000.
  • Finally, withdrawal exclusions apply and customers may be charged an early closure charge.

Fixed Term Savings

This account is the ideal savings account with a fixed term for those who have used up their tax-free portion. Furthermore, customers enjoy a fixed interest rate.

  • The account is free of charges and provides competitive interest rates.
  • Also, the account can accommodate balances between £5,000 to £500,000 in joint or individual names.
  • This is a suitable account for those who are happy to leave their funds untouched for a fixed period.
  • The interest on the account is paid monthly.
  • Customers choose between a 1 or 2-year fixed investments. Furthermore, the investments offer higher interest rates for deposits over £50,000.
  • Finally, the account has a withdrawal exclusion and an early closure charge may apply.

First Saver

This is a free children’s savings account. It is offered to children under the age of 16.

  • Customers who wish to open an account for their children to teach them how to be responsible with money will find this account ideal.
  • Furthermore, the interest on the account is paid quarterly.
  • Customers earn a variable interest rate on all balances over £1.

Deutsche Bank's savings products are quite popular among customers. Read here to find out why.

What We Like About the Royal Bank of Scotland Savings Accounts

Royal Bank of Scotland
Screenshot of Online Savings Flyer Royal Bank of Scotland

The accounts offer a bit of variety and also provide customers with competitive interest rates. There are options available to those wish to save on a monthly basis and those who wish to save a lump sum.

The accounts carry no charges which is great news for those who are determined to let their savings grow. Furthermore, customers are made aware of the limitations and restrictions of the term savings. This allows them to plan their saving properly and perhaps keep their emergency savings in a flexible account.

The children’s account provides children with the means to learn how to manage their money effectively. Also, this account earns a favorable interest rate.

Finally, there are no hidden surprises with these accounts. They are simple and straightforward and customers from all walks of life have access to some form of savings account or another.

Customers who prefer a current account should take a look at Royal Bank of Scotland's options here.

What We Don’t Like About the Royal Bank of Scotland Savings Accounts

Royal Bank of Scotland has a long history and one would assume that the bank would have a product range to match their history. Instead, the product ranges offer the bare minimum when it comes to products and the case of savings accounts, this is sadly the case too.

Customers who have high deposits will have to watch their limits as only a few of the RBS products accommodate balances over £500,000. Furthermore, there are two ISA accounts in the mix, which once again restricts customers. Of the remaining three, only two are available to adults. This gives them very little room in terms of choices. This might be a good thing, but there are smaller banks with lower exposure that offer customers better options.

Finally, the term options only offer clients 1 or 2-year deposits. Those who wish to fix their funds for shorter periods will have to place their funds in the ordinary savings accounts. Those who wish to save for longer have to reinvest their savings, which could risk them losing out should the current fixed term rates be higher than the future rates.

Critical Reviews Rating Royal Bank of Scotland – 6 of 10

Royal Bank of Scotland
Screenshot of Savings Tool Royal Bank of Scotland

RBS has a strong European presence and has all the right platform to invite customers in, however, they fall short with their products. There are some terrific basic savings options, however, that is where they remain.

The interest rates are reasonable, but the benefits of the savings will hardly encourage customers to stick around. Furthermore, the variety of savings will make it difficult for customers to remain inspired to save. The savings accounts are suitable for those who just want to stick their funds away and forget about them.

Finally, with a few added extras or a bit more variety, clients with higher balances might be tempted to pursue products with RBS. Also, the term deposit account will need to expand a little if the bank is hoping to capture a bigger client base. The lack of options will make competitors look more appealing, and at this stage, RBS needs to do something different in order to improve public opinion.

We recently did a full review on Royal Bank of Scotland. Read here to learn more.