How does the new Santander savings account compare?Regular eSaver account offers 5% AER for 12 months

21 March 2016


The new account pays 5% AER, but this rate drops to 0.25% AER after 12 months 

Santander has launched a new regular savings account offering 5% AER for 12 months.  

The Santander Regular eSaver account allows Santander current account customers to deposit a maximum of £200 via standing order every month. These funds can be transferred back into the current account at any time with no penalty.  

After 12 months, the account will convert into a Santander Everyday Saver, paying just 0.25% AER.

Our eMindme email reminder tool can help you avoid being caught out by plummeting savings rates. Just add a few details and we'll send you a timely reminder before a 'teaser' rate expires.  

How does the Santander savings account compare? 

The Santander Regular eSaver account doesn't offer the best interest rate on the market. 

First Direct and M&S Bank both allow current account customers to open a regular savings account paying 6% AER for 12 months, on maximum monthly deposits of £300 and £250 respectively.

However, these savings accounts are less flexible than Santander's offering when it comes to making withdrawals - you'll miss out on interest if you want early access to your funds. 

The Which? Money Compare savings and Isa tables let you search hundreds of savings accounts and Isas from providers large and small to find a great savings rate based on quality of service as well as cost and benefits.

Which? Money Compare table: Regular savings accounts - dozens of accounts compared

Make sure the linked current account is right for you before applying

With most of the best rate regular savings accounts on the market, you'll need to open a current account with the same provider in order to access it, so make sure this is right for you before applying.

The Santander 123 current account pays 3% AER on balances between £3,000 and £20,000, plus up to 3% cashback on certain household bills paid by direct debit. A monthly fee of £5 applies.

Elsewhere, you could earn 5% AER (for the first year, 1% thereafter) on balances up to £2,500 with the Nationwide FlexDirect Account. The TSB Plus account also offers 5% AER on balances of up to £2,000. Both of these accounts have linked regular savings accounts paying 5% AER.

Most current accounts and linked regular savings accounts have terms that customers need to meet in order to earn interest. Always check that you're able to meet these terms before opening an account. 

Find out more: Best bank accounts if you always stay in credit - see our tables

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