Midland said it was expanding from its two sites in England and one in Wales to help cope with increasing customer demand. It also announced plans to extend its telephone service to handle calls seven days a week.
The news follows plans announced last month by Midland's First Direct division to create up to 5,000 jobs in Scotland over the next seven years with its new call centre at Hamilton in Lanarkshire.
Keith Whitson, Midland's chief executive, said: "Our new site is designed to help satisfy demand from Midland's customers for banking services by telephone into the next century. We have chosen Edinburgh because we are very impressed with the quality of the local people and the premises."