BANK of Scotland customers are being told they can no longer access its popular 6% children's savings account because it has been restricted to Halifax branches south of the Border.
The children's account has been withdrawn in Scotland as part of a reorganisation within Lloyds Banking Group.
Customer Alex Aikman had been paying into Children's Regular Saver accounts for his two grandchildren. However, when he went into his local branch recently to renew the accounts after 12 months, he was told the product was no longer available in Scotland.
Mr Aikman said: "We were informed there had been a change in policy which meant this product was only sold by Halifax branches, and that since the account had to be opened at the branch we would need to go to our nearest Halifax branch, which is located at Carlisle.
"It seems an absolute nonsense, when they are one and the same bank, that they do not operate the same rules and conditions. It seems discriminatory."
A spokeswoman for Bank of Scotland, which has switched its press relations operation to London, said: "No-one is being discriminated against. Until September, Bank of Scotland products were aligned with the Halifax and now they are aligned with Lloyds TSB. Now customers can have the Children's Saver."
Lloyds TSB, however, does not offer a Children's Saver but a Young Saver. It pays a rate of 3%, but is available only to holders of a Lloyds TSB current account. Bank of Scotland's website shows it offers a Young Saver account paying 2%.
The Halifax website, meanwhile, warns: "Following a recent refresh of our products, the Children's Regular Saver is no longer available for new applications." The renamed Kids' Regular Saver, however, is available elsewhere on the site.
A Halifax spokeswoman said: "The Halifax Kids' Regular Saver is still open for new applications in Halifax branches."
Bank of Scotland, Halifax and Lloyds TSB are all part of the 41% taxpayer-owned Lloyds Banking Group.
Andrew Hagger, analyst at information website Moneynet, said: "This is the kids' account people talk about. I think the rate is high enough to give the parent the incentive to start saving for their children. Although it only lasts for 12 months, you do have to make a regular payment into the account, so it gets them into the habit of doing that."
Gordon MacDonald, SNP MSP for Edinburgh Pentlands, said the bank was already discriminating against Scottish savers with a 2% rate on a savings account which paid 2.5% in England.
He said: "I contacted Lloyds to raise this issue after one of my constituents wrote to me saying the account he had was withdrawn and the only way for him to open another Halifax Savings Account via branch was to drive 70 miles to Alnwick.
"The bank confirmed there are separate rates as they have different management teams. But it shouldn't be the case there two rates for people living in Scotland and England."
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