You are here: Home - Saving-Banking - News -

Santander ups interest on regular saver account to 5%

Written by: Paloma Kubiak
Santander has increased the rate on its Regular eSaver account to 5% AER gross for 1|2|3 customers.

The bank has upped its Regular eSaver rate from 3% to 5% AER gross (fixed) for 1|2|3 World customers – those who have a 1|2|3 current account or 1|2|3 credit card – as well as for its Select (premium) members.

The new rate is valid for new customers opening the account from 3 April, but Santander confirms that those who opened the account from 13 March onwards will also be moved across to the higher rate with interest backdated.

Customers can open the account online or in a branch and there’s no minimum opening or monthly deposit. But the maximum customers can save each month is capped at £200.

After 12 months, the account will revert to Santander’s Everyday Saver paying 0.10% AER.

Based on the maximum monthly contribution of £200 over the course of a year (£2,400), World and Select customers will earn £64.33 in interest.

For non World or Select customers wishing to open the regular savings account, they’ll be offered an interest rate of 2.50% AER gross (fixed), meaning they can earn a maximum of £32.16 on £2,400.

How does it compare to other linked regular savings accounts?

The Santander deal at 5% is good but there are three others that are better, according to Andrew Hagger of Moneycomms.

He said: “First Direct pays the same 5% rate for 12 months but allows you to save £300 per month as opposed to £200 with Santander.

“M&S Bank’s monthly saver is also 5% but it allows you to save up to £250 per month.

“But the best deal in my opinion is Nationwide Building Society’s Flexclusive saver – you can save up to £500 per month although the 5% rate is variable and could change but you are allowed instant access to your cash at anytime which is very rare with such accounts.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Everything you wanted to know about ISAs…but were afraid to ask

The new tax year is less than a fortnight away and for ISA savers or investors, it’s hugely important. If yo...

Your right to a refund if travel is affected by train strikes

There have been a wave of train strikes in the past six months, and for anyone travelling today Friday 3 Febru...

Could you save money with a social broadband tariff?

Two-thirds of low-income households are unaware they could be saving on broadband, according to Uswitch.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week