Santander relaunches 5% saver, but you’ll need a 123 account to get it

Santander relaunches 5% saver, but you’ll need a 123 account to get it

Santander has launched a new regular saver paying 5% interest, but only to those who hold a 123 account with the bank.

The bank had previously offered a 5% regular saver, but this was later withdrawn in favour of a 3% regular saver. However, the 3% saver has now been taken off sale with the relaunch of the 5% Regular eSaver product.

The Regular eSaver offers 5% interest if savers deposit up to £200 a month for 12 months. Paying in the maximum of £200 a month will earn interest of £64.33 over the year – giving a final balance of £2,464.33.

 

Those after the account need to be part of the bank’s 123 World programme – so holders of a 123 Current Account, 123 Lite Current Account, or 123 Credit Card – or Santander Select customers (those using its wealth banking service).

Non-123 account holders can also open a regular saver but will receive a lower 2.5% rate of interest.

At maturity the balance will transfer to an Everyday Saver account, currently paying 0.1% interest.

How does the competition compare?

First Direct, HSBC, M&S Bank and Nationwide also offer 5% regular savers to customers who hold their respective current accounts.

Nationwide customers can pay up to £500 a month into their regular saver while First Direct users can deposit £300 a month. HSBC and M&S Bank are limited to a £250 deposit each month, but this is still higher than Santander’s £200 maximum monthly pay-in.

The best regular saver not linked to a bank account is the Virgin Money Regular eSaver, which pays 2.25% on deposits of up to £250 a month.

Current accounts themselves have also become a popular way to save cash. The Nationwide FlexDirect account pays 5% interest on balances up to £2,500 for the first year, but this drops to 1% thereafter.

Tesco Bank’s current account pays 3% on balances up to £3,000 while TSB also offers 3% interest on its Classic Plus account, although this is only on balances up to £1,500. Each of these current accounts also has minimum pay-ins and other restrictions. For the full details, read Moneywise’s guide to the week’s best current accounts.

Your Comments

"Those after the account need to be part of the bank’s 123 World programme – so holders of a 123 Current Account, 123 Lite Current Account, or 123 Credit Card holders  – or Santander Select customers – those using its wealth banking service."
 
Bad grammar!  Please clarify what is meant. The ambiguity on the most important statement of article leaves the reader frustrated!

@Maxadolf: I agree, I frowned when I read that...! I think it would be better worded as:
"Those after the account need to be part of the bank’s 123 World programme – in other words, holders of a 123 Current Account, 123 Lite Current Account, 123 Credit Card holders or Santander Select customers & those using its wealth banking service."

Hello Max and Paul, the article has been updated. Hopefully this is clearer.