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Santander ups interest rates and extends regular saver eligibility

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04/07/2022
Santander has increased savings rates across the board, and all personal current account customers can now open its Regular eSaver paying 2.5% AER/gross.

The banking giant announced that from today, all personal current account customers are eligible to open its Regular eSaver account paying 2.5% AER/gross for 12 months – up to £32.26 in interest.

It allows savers to pay in up to £200 per month, with a maximum annual balance of £2,400.

Previously, it was only available to 1|2|3, Select and Private Current Account holders, but now, those with the Everyday and Basic current accounts will be able to open the regular saver. It excludes the 1|2|3 Mini In trust customer accounts.

Santander said the move will benefit 5.4 million UK customers. It comes after it last month increased the in-credit interest rate on its 1|2|3, Select and Private current accounts from 0.5% AER/gross (variable) to 0.75% AER/gross (variable) on balances up to £20,000.

And as of today, it has also increased interest rates across the board:

1I2I3 savings accounts:

  • 1 Year Fixed Rate Bond will increase from 0.7% to 1.5% AER/Gross
  • 2 Year Fixed Rate Bond will increase from 0.9% to 2% AER/Gross
  • 3 Year Fixed Rate Bond will increase from 1% to 2.5% AER/Gross.

Non-1I2I3 savings accounts:

  • 1 Year Fixed Rate Bond will increase from 0.6% to 1.4% AER/Gross
  • 2 Year Fixed Rate Bond will increase from 0.8% to 1.9% AER/Gross
  • 3 Year Fixed Rate Bond will increase from 0.9% to 2.4% AER/Gross

Fixed Rate ISA accounts:

  • Two Year Fixed Rate ISA will increase from 1.3% to 2% AER/tax-free for two years for savings of £500 and over

Easy Access accounts

  • eSaver will increase from 0.25% to 0.75% AER/Gross (variable)
  • Private eSaver will increase from 0.4% to 0.9% AER/Gross (variable)

Hetal Parmar, head of banking and savings at Santander UK, said: “Saving is important to many people for their financial wellbeing, whether it’s for a rainy-day, home renovations or something else. Santander offers a range of savings accounts, now boosted by some of the best rates from a High Street bank, to support millions of customers with their savings goals.”

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