Santander is offering a market-leading seven percent interest rate on its easy access savings account – and people can get started with just £1.
The Edge Saver (Issue One) pays interest, which includes a 2.5 percent bonus rate, monthly on a deposit of up to £4,000 in total.
Withdrawals can be made at any time free of charge, which makes it a good option for those needing more flexibility to dip into their pots when they need to.
However, certain criteria must be followed in order to apply. For example, savers must be aged 18 or over and have a Santander Edge current account.
Just one Santander Edge saver can be held for each Santander Edge current account, which could come as good news for joint savers. This means a maximum of two can be held if a person has both a single and a joint Santander Edge current account.
With rising rates and the impact of the cost of living crisis, almost three in five savers now admit to shopping around to find the best rate for their cash savings, Investect research shows.
Deciding to switch comes after half of savers (49 percent) had held their money in the same savings account for a year or more until they moved it into a better-paying account. Seven percent admitted to holding it in the same account for five years or more.
David Hunt, head of retail savings at Investec, said: “Traditionally many savers can be put off switching due to the perceived hassle and time it takes – and in the recent past low interest rates have meant it often wasn’t worth their while.”
However, he noted: “The impact of the cost of living crisis means that everyone needs to make their money work as hard as it possibly can and, coupled with a rising interest rate environment, there are some fantastic rates for savers out there now – and many are making the switch to reap significant financial benefits.”
Santander is also offering an attractive interest rate for easy access savers who do not have a Santander Edge current account. Its recently launched Easy Access Saver Limited Edition (Issue Three) pays an AER of 5.2 percent on savings up to £250,000 and recently earned a Moneyfactscompare.co.uk “excellent” rating.
Commenting on that deal, Rachel Springall, finance expert at Moneyfactscompare, said the account “takes a prominent position” in the easy access savings sector paying an “attractive” rate.
She said this “may entice savers looking for flexibility with their cash as the account allows unlimited withdrawals. Overall, the deal earns an Excellent Moneyfacts product rating.”
Cynergy Bank and Shawbrook Bank are also offering high easy access interest rates of five percent and 4.93 percent respectively. Elsewhere, Investec’s Online Flexi Saver pays an interest rate of 4.47 percent AER monthly on balances of between £5,000 and £250,000, provides instant access to savings, and allows unlimited deposits and withdrawals to a linked current account.
Mr Hunt said: “We’d encourage all savers to take a moment to review their savings and what interest rate they’re currently getting – and check if you can get more elsewhere.”
