Santander has introduced a fresh regular savings account offering an attractive 8% interest rate. This type of account allows savers to set aside a fixed amount of money each month in return for a higher interest rate.
The new Santander account features an 8% interest rate, which includes a 5% bonus for the initial 12 months. After this period, the rate decreases to 3%. These rates are subject to change as they are variable.
Customers of Santander can save up to £200 monthly through this regular saver, potentially accumulating up to £2,504 with interest after one year, and £5,018 by the end of the second year. It is worth noting that withdrawals can be made without any penalties, but the funds must be transferred to a Santander current account.
The Regular Saver account is exclusively accessible to all Santander current account holders. João Soares, Head of Savings at Santander UK, emphasized the importance of providing straightforward savings accounts with competitive rates that offer genuine value to customers. He highlighted the market-leading rate offered by the new Regular Saver, tailored to support individuals in developing a regular saving habit.
In addition to Santander, other banks like Zopa, First Direct, and Co-op Bank also offer regular saver accounts with varying interest rates and deposit limits. For those seeking easy access savings accounts, Revolut and Cahoot provide competitive rates, while StreamBank and Afin offer attractive fixed-rate options.
Taxpayers should be aware of the Personal Savings Allowance, which allows basic-rate taxpayers to earn up to £1,000 in savings interest annually before incurring tax. The allowance is lower for higher-rate and additional rate taxpayers, with some variations based on income levels.
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