Savings: Santander offers 2.5 percent interest rate

Santander down: Users experience issues across UK

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Santander announced a savings account that has an interest rate of 2.5 percent available to both new and old customers. Their 123 Regular e-Saver has been available since last month and gives Britons a chance to make their money work a little harder.

As inflation sits at seven percent, any cash in savings is losing value over time, however experts have suggested Britons keep at least three to six months worth of expenses in cash for emergencies.

Britons may wish to ensure that any cash saved in emergency fund accounts should be making the most it possibly can.

Santander reports this is “one of the best regular savings accounts for savers currently on the market from a high street bank”.

This new savings account from Santander offers those looking to improve their savings fixed rate of 2.5 percent interest AER/Gross for 12 months.

The account can be managed online through or through the app.

Customers can also access, view and manage their money on the Santander app.

Existing customer also have the chance to secure this tempting offer.

Any cash must be paid into the savings account via standing order from an existing Santander 123, Select or Private current account.

Customers of Santander will be able to transfer up to £200 per month into the bank’s latest savings product.

Britons are reminded that any money which is paid into, and later withdrawn from, the account will go towards the £200 monthly limit.

This £200 monthly threshold means that savers will see a maximum balance of £2,400 a year.

Anyone who is interested in getting Santander’s 123 Regular e-Saver is encouraged to visit their local branch or call the bank directly.

Hetal Parmar, Head of Banking and Savings at Santander UK, said: “We understand saving for the future remains important to many customers, and following the recent increase to the interest rate on our 123 Current Account, we’re pleased to offer 123 World customers even more value with our new Regular e-Saver”.

Recently, the Bank of England’s Monetary Policy Committee (MPC) raised the base to one percent, a 30-year high, so Britons are reminded to look around for the best deals as interest rates for savings could also go up.

Commenting on the rise Rachel Springall, Finance Expert at Moneyfacts.co.uk, said: “As we have seen before, it can take a few months for customers to see any benefit from a base rate rise but there is no guarantee that savings providers will increase their rates.

“Should savers see 0.25 percent passed onto them, it would mean receiving £50 more a year in interest based on a £20,000 investment.

“The top rate tables for easy access accounts are experiencing some rivalry from challenger banks, which is great news for savers who prefer to keep their cash close to hand.

“There is no certainty for a top rate deal to last very long, but consumers can easily switch between accounts if they desire.

“If savers are using easy access accounts as a safety-net, they must check that they will not get penalised for withdrawals and ensure it’s still offering a competitive return.

“Overall, it is positive that savings rates are rising and hopefully will continue to do so in the weeks to come.”

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