When creating a new Reading List from the Reading List screen, the user is not allowed to create one called "Saved" (as that is the default one). However, when creating a new Reading List from an article (after tapping the save button, then tapping "add to list", then tapping "create new") the user is permitted to create a list named "Saved". The behavior in the article should match that of the Reading List screen.
Discovered in the process of diagnosing this iOS bug: https://phabricator.wikimedia.org/T268522