Toronto-based Bank of Montreal (TSX:BMO) has launched a new savings account that provides “bonus” interest to clients who make regular monthly savings contributions.

The BMO savings builder account offers an interest rate of 1.3% when clients increase their savings by $200 or more each month. There is also an introductory offer for this account where clients can receive 2.5% on their savings until June 30, 2015.

Statistics Canada data found that Canada’s household saving rate hit a five-year low of 3.6% in the final quarter of 2014. Over the last 10 years, the average household savings rate has been 4%, down from 7.9% during the 1990s.

“With this in mind, we have introduced the savings builder account to encourage Canadians to use the power of savings and earn more when you save on a regular basis,” says Ernie Johannson, head of North American retail payments and personal banking Canada, BMO Financial Group. “Even a little goes a long way, and it’s never too early to get into the habit. Our message is simple: save, earn, repeat.”