Looking for a new UK savings account? If you want to make your money go further or save up for a rainy day, you’ll want to be getting the best possible interest rates.
In this helpful guide, we’ll be checking out the best Santander savings accounts. We’ll take a look at what interest rates are currently on offer, and any other benefits you need to know about. And of course, how to open an account if you see one you like.
Want to earn a return in multiple currencies? With Wise Interest, you can get a 4.70% variable rate on your GBP balance held in your Wise multi-currency account.
Capital at risk. Current rates do not guarantee future growth.
Variable rate is based on 7 day performance as of 14 Dec 2023. This fund has returned an 0.93% annual average over the last 5 years, excluding Wise and fund manager fees. See full 5 year past performance of funds.
What kinds of savings accounts does Santander offer?
Like many UK high street banks, Santander offers a selection of different savings accounts. There are options for all savings scenarios, whether you need instant access or are saving for a longer-term goal.
Santander offers the following:
- Easy access savings accounts, including the Santander Easy Access Saver and the Santander Edge Saver (only for Santander Edge current account customers). These give you access to your money when you need it, while still earning interest.
- Regular savings accounts, such as the Santander Regular Saver. These let you set up regular payments from your current account, to gradually build up your savings pot.
- Individual Savings Accounts (ISAs), including the Santander Easy Access ISA and the Santander Fixed Term ISA. These are accounts which offer tax-free interest on your savings, up to a certain allowance each tax year. The bank also has a Junior ISA, Stocks and Shares ISA and Inheritance ISA.
- Fixed Term Bonds. These are savings rates that offer a guaranteed interest rate for a fixed term. The interest rate varies depending on the account term.
How to pick the right savings account?
The first thing to compare when shopping around for savings accounts is the interest rate. It’ll always be the most important factor, because it determines what return you get on your hard-earned savings.
But you should also think about whether or not you’ll need instant access to your money. The other option is to lock it away for a set period and let it grow.
With any savings accounts labelled ‘fixed term’, this means that you’ll be locking your money away for a set period. You won’t usually be able to make withdrawals without incurring a fee or penalty. However, you will usually get a higher interest rate in return.
If you’re looking for an everyday savings account which gives you interest and access to your money, an easy access or regular saver is the best choice.
Lastly, consider how you’ll open the account and manage it. Does the bank offer online banking, along with a mobile banking app? Most offer both, including Santander.
But you’ll also find some old-school banks and building societies which only let you manage your account via branch, post or telephone. While some newer digital banks have a mobile app and nothing else. It all depends on how you prefer to manage your money.
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Exploring the best Santander savings accounts
Now, let’s take a closer look at the different types of Santander savings accounts, starting with the best options for everyday savings.
Best regular Santander savings account
Santander only has one account for regular savings. Here’s what you’ll get when you open a Regular Saver account:¹
- Interest of 5% AER/gross (fixed) for 12 months
- Save a maximum of £200 a month
- Manage your account via online and mobile banking.
To open this account, you’ll need to open a Santander current account. You’ll need this in order to set up a standing order for your regular savings deposit, and to withdraw money.
Due to the limit of £200 a month, you can only have one Regular Saver account with Santander.
Best easy access Santander savings account
Santander has two easy access savings accounts available. The standard Easy Access Saver is arguably the best, because anyone can open one. You don’t even need to be an existing Santander customer, just a UK resident over the age of 16 years old.
The Easy Access Saver offers interest of 2.50% AER/gross (variable) for 12 months, It can be managed through online, mobile, phone and in-branch banking. You can deposit and withdraw money whenever you want, and save anything from £1 up to £2 million.¹
But there’s also the Santander Edge Saver. It offers higher interest at 4.00% AER/ 3.93% gross (variable) on balances up to £4,000. This includes a bonus of 0.50% AER (variable) for the first 12 months.¹
However, it’s only available for Santander Edge current account customers. This account comes with a £3 fee, although it does also offer cashback on your bills.² So, it could work out to be good value while also opening the door to an exclusive savings account with a higher interest rate.
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Best Santander individual savings account (ISA)
If you’re looking for tax-free savings, the best Santander ISA to go for is its Easy Access account. Here are the details:³
- 3.20% AER/tax-free (variable) for 12 months
- Minimum opening deposit of £500
- Manage your account in branch, over the phone or in mobile/online banking.
As the name suggests, you can withdraw your money whenever you want. Although, bear in mind that you’ll lose your tax-free benefits on that amount if you do.
You don’t need to be an existing customer to open a Santander ISA. You can simply apply online.
Looking for info on the Santander Help to Buy ISA? Unfortunately, you can no longer open Help to Buy ISAs in the UK, so Santander and other banks have withdrawn them from sale. But, you can still switch providers if you have set one up in the past.
Best Santander fixed-rate bonds account
Like with its regular saver, Santander only has one fixed term bonds product. However, you can choose the term you’d like. The interest rate is higher for Santander Select and Private Banking customers. But you don’t need to bank with Santander already to be eligible for a Fixed Term Bonds account.
Here are your options:⁴
| Account term | Standard rate | Rate for Santander Select and Private Banking customers |
|---|---|---|
| 1 Year | 3.90% AER | 4.10% AER |
| 2 Years | 3.90% AER | 4.10% AER |
| 3 Years | 3.90% AER | 4.10% AER |
Remember, with a fixed-term bonds account, you won’t be able to make any deposits or withdrawals until the term has ended. You can’t close the account within the fixed term either.
How to apply for a savings account with Santander?
If you’ve spotted an account that meets your needs, the next step is to apply. For most of its accounts, Santander lets you apply online or via its mobile banking app. So you should find the process pretty quick and easy.
For the Easy Access Saver, you can also apply over the phone and in a local branch. Find your nearest Santander branch here.
Here’s what you need to do:
- Go to the Santander website and check the eligibility criteria for the account you’re interested in
- If you tick all the boxes and are happy with the account details, click the ‘Apply’ button
- Read the terms and conditions and tick the box to confirm, then click ‘Continue’.
- Complete the online form, providing your personal details and info about your employment and savings if requested.
- Check your application and submit. You should receive a confirmation email right away, followed by another email or letter once your account has been opened.
According to the bank, it should only take a matter of minutes to apply online.
And that’s it - your handy guide to the best Santander savings accounts. The bank has options for all kinds of saver, whether you need instant access to your money or are prepared to lock it away for higher interest rates.
It’s also good to know that you don’t necessarily need to be an existing customer to open a savings account with Santander.
Just remember that a traditional savings account isn’t the only way to boost your pot.
Sources used:
Sources last checked on date: 27-Jul-2023
*Please see terms of use and product availability for your region or visit Wise fees and pricing for the most up to date pricing and fee information. This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Wise Payments Limited or its subsidiaries and its affiliates, and it is not intended as a substitute for obtaining advice from a financial advisor or any other professional. We make no representations, warranties or guarantees, whether expressed or implied, that the content in the publication is accurate, complete or up to date.
