National Westminster Bank and The Royal Bank of Scotland have introduced two new accounts for people aged 50 and above, both offering interest rates at least 1.25% above current base rate.

The Pensioner Fixed Rate Account is a two-year account offering a fixed rate of up to 4% gross for the full term and is available to individuals who are aged 60 or over or to those who can confirm they are drawing a pension.

The account has a minimum balance requirement of GBP5,000 with no maximum subscription and the start date of the fixed two-year term is March 16, 2009, maturing March 16, 2011.

In addition, National Westminster Bank (NatWest) has introduced the Telephone Saver Plus, an instant access account available to the over 50s with a top rate of 2.80% AER, including a 12-month bonus of 0.78% gross. The account requires a minimum balance of GBP25,000 and has no maximum subscription limit. Customers may make unlimited withdrawals without penalty and keep track of their savings via telephone or online banking.

Carol Sleith, head of savings at NatWest, said: Many individuals over the age of 50 rely on their savings for income, especially during times of financial uncertainty. By introducing two new accounts, we are able to further meet the savings needs of our customers and offer a choice of ways to save.

The Pensioner Fixed Rate Account provides a longer term savings option for customers while the Telephone Saver Plus provides an opportunity for customers to make the most of their money for the short term. Both accounts offer a regular monthly income with a competitive interest rate.