Santander have announced that they are set to launch of a new savings account with a very favourable interest rate for customers.
The bank will be offering the new savers account to new and existing customers tomorrow (April 6) and UK residents aged 16 or over can open an account for as little as £1.
Called 123 Regular e-Saver, the new addition will offer those looking to boost their finances a fixed rate of 2.5 per cent interest AER/Gross (fixed) for the first 12 months.
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According to the Express, Santander have said it's one of the best regular savings accounts for consumers currently on the market from a high street bank and will be accessible to those who are existing 123, Private and Select current account customers and those who are 16 years of age or older.
Any funds must be paid into the savings account via standing order from an existing Santander 123, Select or Private current account and customers will be able to transfer up to £200 per month into Santander's latest savings offering meaning customers could save up to £2,400 a year.
They warn however that any money paid into - and later withdrawn from - the account will go towards the £200 monthly limit.
Towards the end of the 12-month term, the balance, including any interest acquired, will be paid back into the bank’s current account from which the standing order was paid from. However if the saver's standing order is in place when the Regular eSaver comes to an end, the final account balance and interest will be moved into an Everyday Saver account.
After the first year is over, the account will rollover to the next fixed rate available at the time.
Santander state that you "can make any number of payments via standing order and you don’t have to make a deposit every month. The amount can vary each month, provided the monthly limit isn’t exceeded.
"Your month is calculated by the date that you open your Regular eSaver, e.g. you open the Regular eSaver on the 16th of a month, your month will run from 16th of one month to the 15th of the next month.
"Standing orders are only processed Monday to Friday. If your standing order falls on a weekend or bank holiday your payment will be made on the next working day, if this is the last day of the month your payment won’t reach us until the following month."
At present, Santander’s Regular e-Saver, issue 13, has an interest rate of 0.5 percent AER/Gross for 12 months however all customers who currently have a Regular e-Saver account will automatically get the new 2.5 percent rate on any new savings.
Hetal Parmar, the head of Banking and Savings at Santander UK, explained why the financial institution is hiking its interest rates across some of its savings products.
Mr Parmar 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."
You can find out more about the new savings account here.
