Santander is increasing savings account interest rates

Santander is among the banks offering customers interest rate increases across its wealth of savings products.

The financial institution has hiked rates across its range of fixed-rate savings accounts and ISAs with the latest rise being applied last month.

Interest rates have been raised over the past year by multiple banks and building societies in response to the Bank of England’s base rate hike.

Central banks have bolstered rates multiple times over the year in an attempt to mitigate the damage being caused by inflation on the economy.

One of the banks doing this is Santander which has continued to promote the latest savings deals despite a challenging economic environment.

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Here is a full breakdown of the savings accounts

  • Santander Edge Saver (seven percent AER/6.78 percent gross for 12 months)
  • Fixed rate ISA (5.45 percent to 5.60 percent AER/tax-free depending on term length)
  • Regular Saver (five percent AER/gross for 12 months)
  • Easy Access ISA (3.20 percentAER/tax-free variable for 12 months)
  • Easy Access Saver (2.50 percent AER/gross for 12 months).

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Mark Hicks, the head of Active Savings at Hargreaves Lansdown, broke down the current state of savings deals currently being offered by banks and building societies.

He explained: “Fixed rate fever continued in August, as £8.3billion rushed into deals at the peak of the market.

“It’s a pattern we have seen reflected in a real appetite for fixes among Active Savings clients, who have grasped the opportunity to snap up a deal. However, there are more worrying signs emerging from the easy-access market.

“Rates have backed off very slightly in the months since, but not dramatically so. There are still some really strong deals around, so the appetite for fixed rates hasn’t been sated yet.”

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Mr Hicks added: “However, we’re not expecting rates to rise from here, so if you were waiting to see if deals went higher before fixing, then it’s worth securing one sooner rather than later.

“The raid on easy access has slackened slightly, but still £12.4billion was pulled from accounts. Some of this may have found its way into fixed-rate deals.

“However, at this stage in the cost-of-living crisis, there’s a real risk people are being forced to dip into their savings to make ends meet.”

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