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Santander launches market-leading savings account paying 5.2% – but only for a limited time

Paloma Kubiak
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Paloma Kubiak

Santander has launched an easy access savings account paying a market-leading 5.2% AER. You don’t need to be an existing customer to get the deal, but you may need to move fast.

The Santander Easy Access Saver Limited Edition (Issue 3) has a rate of 5.2% AER / 5.08% gross (variable) on savings between £1 and £250,000. However, you can keep up to £2m in this account but will only earn interest on up to £250,000.

This top paying rate is available for the first 12 months of opening the account – online, via app, phone or in branch – with customers able to deposit and withdraw their cash at any time without fees or restrictions.

At the end of the 12-month term, your cash will be transferred to an Everyday Saver, currently paying 1.05%.

One of the major draws of the limited edition account – aside from the top paying rate – is that you don’t even need to bank or hold other accounts with Santander to be eligible.

It’s one per customer, but if you already hold a Limited Edition (Issue 1) and/or (Issue 2) account, you can still open this latest (Issue 3) product.

When you open the account, you’ll be asked if you want interest to be paid annually or monthly which you can’t change later. See YourMoney.com’s Monthly vs annual savings interest for more information to help you decide.

However, this account is only available until Sunday 17 September, or sooner if there’s high demand. So, if you’re looking for a new home for your savings, you may want to go quick on this one before it’s pulled.

Based on an untouched £1,000 deposit, you’d earn £52 in interest. Based on a £5,000 deposit over the year, customers could typically earn £21.66 in interest every month – that’s £260 annually.

But as this is a variable savings account, the rate can go down, or up “in response to industry and market conditions”. If the rate is set to change, Santander confirmed it will let customers know around two months ahead.

‘Maximising savings income’

Andrea Melville, director of current accounts, savings and business banking, said: “We’re pleased to deliver this top of market product for our customers, providing the convenience of an easy access account, to help build up their savings.

“We know now more than ever people want their money to go further and this account is one of the ways we are helping customers maximise their savings income.”

Santander has also today increased the rates on its fixed term ISA products. The one-year fixed ISA now pays 5.05% AER/gross and the two-year fixed ISA pays 5.10% AER/gross.

These rate changes come just weeks after Santander increased the interest rate on its linked easy access Edge Saver to 7% for both new and existing customers.

Related: How to get 7.5% interest without tying up your savings for years