It’s been quite a year already for savings accounts, as we’ve watched interest rates grow throughout 2023.
However, interest rates have not increased as quickly as expected when compared to the Bank of England’s base rate, which currently stands at 5.25%.
That’s why it’s always good to hear when high street banks are upping their rates.
This is the case for Santander, as it has announced an interest rate increase on its Santander Edge Saver.
The rate was previously 4% AER which included a 0.5% bonus rate for the first 12 months of opening.
However, the interest rate has now risen to 7% AER on balances up to £4,000, which includes a 2.5% AER bonus rate for the first 12 months. Plus, it’s a flexible savings account as withdrawals and deposits can be made at any time and the account can be opened with as little as £1.
This is a big leap in the interest rate and it’s an attractive option for savers that are looking to earn some extra money on their hard earned savings.
This interest rate can be unlocked if you have a Santander Edge Current Account, which offers some enticing cashback bonuses, including 1% cashback (up to £10 a month) on selected household bills when you pay via direct debit and 1% cashback (up to £10 a month) at supermarkets and on travel costs.
Remember to use your debit card to make the most of the cashback offers, and you’ll need to pay in £500 a month and have two active direct debits.
If you would like to take advantage of this current account and the linked 7% savings account, you can switch your current account by using the Current Account Switch Service (CASS) which is completely free to use and guides you through the process.
Once you’ve switched, you can then start to earn some extra money on your savings. The Santander Edge Saver is a great option for anyone that would like to start their savings journey, or maybe already has a small pot of savings.
For example, if you added £4,000 into the Santander Edge Saver, a basic-rate taxpayer would earn an attractive £276 (before tax) in one year.
Plus, the good news doesn’t stop there.
At Money.co.uk savings accounts, we love helping you to make confident financial decisions so you can save for what matters most. So, we’ve teamed up with Santander to celebrate the new interest rate by offering you an exclusive bonus.
If you are accepted for a Santander current account (Edge, Edge Up or Everyday Current Account), we’ll give you a £10 Amazon voucher to spend on whatever you wish! Full terms and conditions can be found here.
So, if you would like to maximise the interest on your savings then consider this latest offering for Santander.
You might be surprised by how fast your savings pot can grow in 12 months…
As a trained journalist, Lucinda has spent the past 10 years writing and editing content for regional and national titles, including The Mirror, WalesOnline and Manchester Evening News. She is now a personal finance editor and specialises in savings, helping people to make confident financial decisions so they can save for what matters most.