Santander raises savings interest rates to 5.60%

Santander has recently announced further increases to the interest rates of its savings accounts.

Earlier this week, the bank confirmed that it was raising the rate of its one and two-year fixed-rate ISAs.

This follows a series of interest rate boosts from the bank over the past year to better support savers.

From yesterday, Santander’s one-year fixed rate ISA now pays customers a rate of 5.60 percent AER/tax-free.

As well as this, the financial institution’s two-year fixed rate ISA is paying savers 5.45 percent AER/tax-free.

Read more… Bank boosts rates on ISAs and other savings accounts[LATEST]

Martin Lewis discusses interest rates

The bank is giving customers switching in an ISA with at least £10,000 in value from another provider a £50 e-voucher.

Those interested in opening up a fixed-rate ISA with the financial institution can so online or by visiting their local Santander branch.

Interest rates have been raised by central banks over the past year in a bid to tackle the impact of inflation.

Despite the recent wave of rate increases across the world, savers have still been straddled with record-high inflation which has diminished returns.

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Andy Mielczarek, the founder and CEO of SmartSave, outlined why savers may not be getting the benefit of these hiked interest rates.

He explained: “With inflation remaining stubbornly high, the money most people have in savings is losing value in real terms.

“Even though interest rates have risen notably since the end of 2021, and may again tomorrow, millions are not seeing any significant benefits from this.

“This is because too many banks are still failing to pass better rates onto customers, particularly where easy access and current accounts are concerned.”

Here is a full breakdown of all the updated savings interest rates for Santander products in September 2023:

  • 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 percent AER/tax-free variable for 12 months)
  • Easy Access Saver (2.50 percent AER/gross for 12 months).

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