Santander UK launches new savings account and savers could win £100,000 – but there is a warning to note
Santander UK has launched a new savings account offering instant access but there are withdrawal limits
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Santander UK has today launched a new savings account paying an interest rate of three per cent AER.
The Limited Access Saver, as the name suggests, offers customers immediate access to their money, but there is a limit to the number of fee-free withdrawals.
The account offers three per cent AER/2.96 per cent gross (variable) to customers who make no more than two withdrawals each calendar month.
If a customer makes three or more withdrawals in a month, their rate will drop to 1.20 per cent AER/1.19 per cent gross (variable) for that month.
Santander UK said customers can open the account with a minimum of £1
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It will then return to three per cent the following month.
The account can be opened with a minimum of £1 and people can open the account in a branch, via mobile banking or online.
Andrea Melville, Director of Current Accounts, Savings and Business Banking, Santander said: “Throughout this year we’ve looked to deliver value to our customers with our range of savings products and we continue to build on that with our new Limited Access Saver.
“Most of our easy access savings customers typically make less than three withdrawals a month, so we have designed our new Limited Access Saver with this in mind.”
Savers who open a Limited Access Saver before November 30, 2023, would be eligible to enter Santander’s £100,000 prize draw for customers if they deposit at least £100 in their Santander current and/or instant access accounts.
Rachel Springall, finance expert at Moneyfacts, told GB News it was “positive” to see Santander launch a new savings account for customers who want a bit of “flexibility” with their cash in case of emergencies.
However, she warned savers that they would need to plan withdrawals “carefully” in order to maximise the interest they can earn.
Ms Springall also urged savers to note that there are some alternative options which, at the time of writing, pay a higher interest rate.
She said: “It is worth noting that the account has a term of 12 months and thereafter will transfer to the Everyday Saver account which currently pays a lower rate.
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“With this in mind, it is imperative savers shop around as the end of their account term approaches.
“A few alternative providers are paying more than 2.96 per cent gross / 3.00 per cent AER on an easy access account, and some of which do not pose any restrictions on withdrawals.
“Savers who have £1 to open an account will find cahoot paying 5.20 per cent gross/AER (on balances up to £3,000), with Cynergy Bank (maximum £1 million) and Hampshire Trust Bank (maximum £250k) both paying a rate of 5.15 per cent gross/AER.
“Santander has been known to pull attractive accounts from sale at short notice, so savers may need to act quickly to take advantage.”
The bank launched an easy access savings account – the Easy Access Saver Limited Edition (Issue 3) - paying 5.20 per cent on the anniversary (5.08 per cent monthly) on September 4 this year.
Santander pulled this account less than 10 days later. Santander now offers an interest rate of 1.70 per cent AER/gross (variable) for 12 months on its Easy Access Saver.
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