Santander has introduced a new regular saver account with an attractive 8.00% AER/gross (variable) interest rate. Announced on Tuesday, June 23, 2026, the account offers a 5% bonus for the first 12 months, after which the rate falls to 3% AER/gross (variable).
Key Features and Limits
The account allows monthly deposits up to £200. Santander, which operates around 350 branches across the UK, provided examples of potential returns. If you deposit £200 monthly without withdrawals, your balance could reach £2,504 after one year (at 8% AER), including £104 in interest. After 12 months, the rate drops to 3% AER, but you continue earning interest on both new deposits and the existing balance. By year two, the balance could be £5,018, and by year three, £7,607 (assuming continued £200 monthly deposits and no withdrawals).
Variable Rate and Flexibility
The bank emphasizes that these figures are based on current rates and are subject to change. Variable rates mean Santander can adjust the AER in response to central bank decisions or economic conditions. Customers will be notified of any changes. Unlike some accounts, withdrawals are permitted at any time without penalties. However, only one Regular Saver account can be held at a time, and you must have a Santander current account. Eligibility requires being 16 or older and a UK resident.
Post-Bonus Considerations
Santander advises that after the 12-month bonus period ends, customers may wish to compare this account with other savings options, including opening a new Regular Saver. A new account would typically require restarting monthly savings, while keeping the existing balance in this account may suit those who prefer to hold savings in one place.
