Santander has introduced a new regular savings account offering an 8% interest rate. This type of account allows savers to deposit a fixed amount of money monthly in return for a higher interest yield.
The newly launched Santander account features an 8% interest rate, inclusive of a 5% bonus for the initial 12 months, which later decreases to 3%. These rates are subject to change as they are variable. Customers can save up to £200 per month through this regular saver, potentially accumulating £2,504 with interest in the first year and £5,018 in the second year.
Withdrawals from this account can be made without penalties, but funds must be transferred to a Santander current account. The Regular Saver is exclusively accessible to all Santander current account holders.
João Soares, the Head of Savings at Santander UK, stated, “We understand that customers seek straightforward savings accounts with competitive rates and value. Our new Regular Saver provides customers with a leading market rate while encouraging consistent saving habits.”
Moreover, Santander offers additional benefits to new customers who switch their current account using the Current Account Switching Service, including £180 for saving or spending purposes. Other banks like Zopa, First Direct, and Co-op Bank also provide regular saver options with varying interest rates and monthly saving limits.
For those seeking easy-access savings accounts, Revolut offers 5% to new customers for six months, while Cahoot provides a 5% rate on deposits up to £3,000. StreamBank and Afin offer competitive fixed-rate options for one-year and five-year terms, respectively.
The article also mentions the Personal Savings Allowance, stating that basic-rate taxpayers can earn up to £1,000 in savings interest annually before incurring taxes. Higher-rate taxpayers have a lower allowance of £500 per tax year, while additional rate taxpayers do not receive any allowance. Furthermore, individuals earning below the personal allowance of £12,570 can benefit from a starting rate for savings of £5,000, which decreases as income surpasses the personal allowance threshold.
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