Following the Bank of England (BOE) decision to raise the base rate from 1.75 to 2.25 percent last month, banks have been passing on the savings to their customers. Santander has upped the interest rate on its savings accounts and customers can now earn up to £786 interest per year. In addition, some may also qualify for a £50 bonus.
There has never been a more important time for people to get the best rates on their savings as the value of cash continues to fall due to soaring inflation.
Santander has increased the interest rate on its 1I2I3, Select and Private current accounts to a monthly interest of 1.50 percent AER from 1.00 percent AER on balances up to £20,000.
New and existing customers who transfer an ISA of at least £10,000 from another provider into a Santander Fixed Rate ISA will benefit from a £50 retail voucher on top.
This can be spent at over 100 retailers, including restaurants, supermarkets, clothes stores and subscription services.
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Meanwhile, Santander is providing double cashback on customers’ gas and electricity bills during September and October.
Santander also offers other competitive saving rates, including 2.50 percent on the 123 Regular eSaver.
This increases to 3 percent on the 1I2I3 Mini Current Account for children and young adults.
Hetal Parmar, Head of Banking and Savings at Santander UK, said: “We understand saving for the future is important for many people and our increased rates on cash ISAs and the 1I2I3 Current Account will boost returns on customers’ money, helping with their savings goals.”
He continued: “For over a decade our popular 1I2I3 account has provided ongoing value and now customers can earn up to £298 in interest per year, plus cashback on household bills.”
Savers can check exactly what returns they could get by using the Bank of England savings calculator.
However, those who can save more and invest in an ISA will receive its top interest rate of 3.60 percent which would mean an extra £736 at the end of one year.
These savers would also qualify for the £50 bonus, eaning they would be £786 better off.
Santander’s Fixed Rate Cash ISAs:
- One Year Fixed Rate ISA – 3.35 percent AER
- 18 Month Fixed Rate ISA – 3.45 percent AER
- Two Year Fixed Rate ISA – 3.60 percent AER.