Published On: Wed, Nov 2nd, 2022

Santander increases interest rates across savings accounts – ‘Top of the market!’ | Personal Finance | Finance

The bank has recently increased rates across its Cash ISA range. Any customers who transfer an ISA of at least £10,000 from another provider into a Santander Fixed Rate ISA will receive from a £50 retail voucher. This can be spent on participating retailers, supermarkets, restaurants and subscription services.

Here is a full list of the Cash ISA products from Santander along with their correlating interest rates:

Easy Access ISA (eISA)(3) – two percent AER/tax-free (variable) from 1.85 percent

One Year Fixed Rate ISA – 3.70 percent AER/ tax-free (fixed)   

18 Month Fixed Rate ISA – four percent AER/ tax-free (fixed)

Two Year Fixed Rate ISA – 4.20 percent AER/ tax-free (fixed) 

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Hetal Parmar, the head of Banking and Savings at Santander UK, shared why the bank has increased rates at this time.

Mr Parmar explained: “We are delighted to boost returns on savings with best buy rates across a range of accounts that fit with different savings goals.

“Savers can choose the flexibility of easy access savings as well as guaranteed rates on tax-free ISAs, all with the peace of mind that their money is earning a great return.” 

Experts are sounding the alarm that Britain will face the biggest interest rate hike in 30-years this week as the Bank of England looks set to take further action.


Sarah Coles, a senior personal finance analyst at Hargreaves Lansdown, explained: “For savers, any rate rise is unlikely to provide an overnight big bang where rates jump significantly.

“With the big high street banks stuffed full of lockdown savings, they’re happy to continue offering miserable rates – typically under half a percent. It means it’s up to the smaller, newer and online banks to bump rates up.

“They don’t want a vast amount of new cash, and they don’t want to pay more than they have to for it, so they’re likely to continue nudging rates up a fraction at a time.

The rate rise is likely to mean the upwards shuffle continues, rather than providing any particularly dramatic acceleration.”

Recent research from Scottish Friendly has found that household savings in the UK have fallen to their lowest level since 1976 in light of the country’s issues with inflation.

Kevin Brown, a savings specialist at Scottish Friendly, explained: “The combined effect of rising inflation, stagnant wage growth and low interest rates means savers have been incredibly hard pressed over the past year.

“These conditions created a perfect storm for savers that resulted in real returns falling to a 46-year low and the UK savings ratio plummeting.

“Although the situation remains dire, the outlook is a little brighter after the government took action to help people cope with rising energy bills, which is set to limit the previously forecasted peak of inflation.”

This article originally detailed Santander’s eSaver account which was recalled on October 17 and is no longer available to savers. We are happy to correct the record of the savings accounts which are currently on offer by Santander.

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