Santander has unveiled a new savings account offering an impressive 8% annual equivalent rate (AER) of interest, a move that a finance expert has described as 'eye-catching' for those looking to build their savings. The account, launched on Tuesday, is available to all customers, including both new and existing current account holders, and comes with no penalties for withdrawals.
Account Details and Interest Rates
The account pays 8% AER for the first 12 months, which includes a 5% bonus rate. After this period, the bonus is removed and the rate reverts to 3% AER for the following year. Savers can deposit up to £200 per month and make unlimited withdrawals without any charges. Santander confirmed that the account is accessible to all customers, including those with its fee-free Everyday current account.
Expert Praise and Market Comparison
Rachel Springall, finance expert at Moneyfactscompare.co.uk, praised the account, stating: 'Santander has shot to the top of the market with its new Regular Saver paying 8% AER, incredibly eye-catching for those looking to gradually build their savings pot.' She noted that unlike other regular savers that often revert to a much lower rate, this account continues to pay 3% AER for an additional year. Springall also highlighted the flexibility of the account, including the ability to make unlimited withdrawals.
Additional Incentives and Switching Offer
For those considering switching their bank account to Santander, the bank is currently offering a £180 reward when customers use the Current Account Switch Service (CASS). This service transfers balances, standing orders, and direct debits to the new account. Springall encouraged consumers to start saving regularly, emphasising that 'those who save little and often can feel more in charge of their financial wellbeing.' She advised that regular savings accounts are ideal for building an emergency fund or saving for specific goals, but cautioned that some accounts can be restrictive and may not suit larger deposits.
