A major high street bank has launched a savings account offering eight per cent interest, positioning itself at the top of the market for millions of Britons looking to grow their money.
The new regular saver product pays one of the best rates currently available, making it an attractive option for those wanting to build up cash gradually each month.
The account is open to all the bank’s current account holders, including those with fee-free options, meaning savers do not need to pay monthly charges to access the leading rate.
Santander UK has unveiled the new Regular Saver with an interest rate of eight per cent AER, which the bank describes as a market-leading offer.
The product is accessible to every Santander current account customer, whether they hold an Everyday, Edge, Edge Student, Edge Up or Explorer account.
Crucially, those with the fee-free Everyday current account can take advantage of the rate without paying any monthly charges.
Savers can deposit a maximum of £200 each month into the account, with a minimum balance requirement of just £1.
The bank limits customers to one Regular Saver account each.
The account comes with no restrictions on withdrawals, allowing customers to access their money whenever they need it without facing penalties.
The product is accessible to every Santander current account customer
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GETTYThe headline eight per cent rate includes a five per cent variable bonus that applies during the first 12 months of holding the account.
Once this initial period ends, the interest rate falls to three per cent AER, though the account continues for another year at this level.
This differs from some rival regular savers on the market, which move customers to flexible savings products paying considerably lower returns after the bonus period expires.
Rachel Springall, Finance Expert at Moneyfactscompare.co.uk, said: “Santander has shot to the top of the market with its new Regular Saver paying eight per cent AER, incredibly eye-catching for those looking to gradually build their savings pot.”
Once this initial period ends, the interest rate falls to three per cent AER
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GETTYShe added that it is “great to see the account made available to both new and existing current account customers, including its fee-free Everyday option.”
Springall noted that regular savings accounts are ideal for slowly building a pot as they encourage the savings habit.
However, she cautioned that consumers will need to work out if they are the right choice for them, as some accounts may not be suitable for larger deposits.
Those looking to switch their current account to Santander can receive an additional £180 when they move across using the Current Account Switch Service, which transfers balances and redirects standing orders and direct debits automatically.
High street banks and building societies are offering savings accounts with attractive interest rates | GETTY
Customers who deposit the maximum £200 monthly could accumulate £2,504 including interest after the first year
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PACustomers who deposit the maximum £200 monthly could accumulate £2,504 including interest after the first year, rising to £5,018 after two years.
João Soares, Head of Savings at Santander UK, said: “We know customers want savings accounts that are easy to understand, offer a competitive rate and deliver value.
“That’s why our new Regular Saver rewards customers with a market-leading rate, while supporting customers’ who want to build up a habit of saving regularly.”