Published On: Fri, Jul 29th, 2022

Santander offering customers 2.5% rate – how does it compare with Nationwide & NatWest? | Personal Finance | Finance


Earlier this month, the bank announced all its current account customers will be able to open a Regular eSaver account. Other banks and building societies, such as NatWest and Nationwide, have also hiked interest rates despite the cost of living crisis. Returns on savings and investments are being diminished by the UK’s soaring inflation rate which recently reached a 40-year high of 9.4 percent.

This particular savings product from Santander pays a 2.50 percent interest AER/Gross for 12 months.

Around 5.4 million UK customers are set to receive a boost to their savings, according to Santander.

The Regular e-Saver was previously only available for the bank’s 1I2I3, Select and Private Current Account customers.

Following this change, the savings account is now accessible to all Santander personal current account customers including Everyday Current Account and Basic Current Account holders.

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On top of this, the bank has increased rates across much of its savings range to benefit as many of their customers as possible.

Hetal Parmar, the head of Banking and Savings at Santander UK, shared why the financial institution has opted to raise interest rates at this time.

Ms Parmar explained: “Saving is important to many people for their financial wellbeing, whether it’s for a rainy-day, home renovations or something else.

“Santander offers a range of savings accounts, now boosted by some of the best rates from a high street bank, to support millions of customers with their savings goals.”

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In comparison, Nationwide Building Society recently raised the interest rate on its Triple Access Saver by 1.50 percent.

On top of this, the financial institution launched a new issue of its One Year Triple Access Online Saver which is now paying a hiked rate of 1.50 percent.

Each account will allow customers to make three withdrawals during the 12-month period with any further withdrawals reverting the savings product to a 0.15 percent rate.

Tom Riley, the director of Banking and Savings at Nationwide Building Society, said: “Our Triple Access Online Saver and ISA accounts pay some of the highest rates on the market and will appeal to those wanting to save with a well-known high-street brand that they trust.

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“At the same time, we are also increasing rates on our fixed rate bonds offering competitive rates for those who want to lock their money away for a period of time.”

Despite being another generous interest rate offering, Nationwide is unable to beat Santander’s latest hike.

However, a recent savings announcement by NatWest has been able to best Santander’s offering.

Currently, NatWest has a savings account with a 3.25 percent interest rate for customers on their first £1,000.

A further 0.30 percent interest rate is earned on balances from £1,001 to £5,000 and 0.10 percent on any amount over £5,000 in your account.

In order to open this account, customers need to be at least 16 years of age and a resident of the UK.

The account can be opened online or through our mobile app and savers will be able to manage their finances using the same means or by visiting a local branch.

Customers can only pay up to £150 into the NatWest savings account every calendar month.



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