Santander has launched a new regular saver account that pays a highly competitive interest rate of 8.00% AER (annual equivalent rate). The offer includes a boosted rate of 5.00% AER for 12 months and is available to all Santander current account customers, including those with a fee-free Everyday current account.
In this article, we explain how the Santander Regular Saver account works, who is eligible, and how it compares to the best regular saver accounts on the market.
How to access the Santander Regular Saver account
The 8% Regular Saver Account is available to Santander current account customers, which includes the free 'Everyday' current account.
To access the Santander Regular Saver account, you must:
- Be a Santander current account customer
- Be a UK resident
- Be aged 16 or over
- Close your existing Santander Saver account (if you have one)
How the Santander Regular Saver Account works
The new Santander Regular Saver Account offers a promotional variable rate of 8% AER (Annual Equivalent Rate). The rate includes a 5.00% AER (variable) bonus for the first 12 months.
Santander Regular Saver Account - Key features
- Monthly deposits - Customers can save a maximum of £200 each month
- Minimum balance - The account can be opened with a minimum balance of £1
- Maximum balance - The maximum amount you can deposit over a 12-month period is £2,400
- Withdrawals - Customers are permitted to make withdrawals from the account whenever they wish, without facing any penalty fees
- Account limit - The Regular Saver account is limited to one account per customer
- Existing customers - If you already hold a Santander Regular Saver account, you will need to close your existing account to be eligible for the 8% AER rate. To do this, you'll need to reduce the account balance to zero, then chat with Santander directly in order to close the account. It can take up to 2 working days for your account to close. Any interest due from your closed account will be moved to your Santander current account from which the standing order was paid.
- Interest payment - Interest is paid into your account each year on the anniversary of your account opening.
By saving the maximum of £200 per month for the first 12 months, and making no withdrawals, customers can earn up to £104 in interest. This would result in an estimated balance of £2,504 after the first year. Once the promotional 12-month period has ended, the savings rate reverts to 3% AER.
Current account switching offer
You can take advantage of the bank's £180 switching offer if you request a switch via the Current Account Switch Service (CASS) when opening an account. The cash incentive is subject to terms and conditions, which include paying £1,500 per month into the account and having two active Direct Debits for selected household bills. For more information on this and other switching offers, read our article, 'Best bank account switching offers'.
How does the Santander Regular Saver account compare?
The boosted Regular Saver Account from Santander is one of the top regular saver accounts on the market, but there are other options to consider. If you are looking to save up to £300 per month, you could consider the Zopa Biscuit Regular Saver or the Co-operative Bank Regular Saver, which offer 7.10% AER and 7.00% AER, respectively. However, like the Santander Regular Saver, you must hold a current account with these banks. If you do not wish to open a new current account, then the Monmouthshire Building Society Regular Saver offers a 6% AER, and you can save as much as £500 per month. For more alternatives, read our round-up of savings accounts in the UK with more than 5% interest.
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