Santander is one of the many banks that are increasing interest rates across its range of savings accounts.
Financial institutions across the world have been raising rates following the decision by many central banks to hike base rates.
This has been done to mitigate the detrimental impact of inflation on the economy of various countries.
Savers in the UK will benefit from Santander’s latest move to hike interest rates on its easy-access savings accounts and ISAs.
Recently, the bank launched a third issue of its Easy Access Saver and bolstered the rates of its ISA range.
Following this latest move by the international bank, here is a full list of the savings interest rate changes from Santander:
- Santander Edge Saver – now paying seven percent AER/6.78 percent gross for 12 months)
- Easy Access Saver Limited Edition (Issue 3) – now paying 5.20 percent AER/5.08 percent gross for 12 months
- Fixed-rate ISA – now paying 5.05 to 5.10 percent AER/tax-free depending on term length
- Regular Saver – now paying five percent AER/gross for 12 months
- Easy Access ISA – now paying 3.20 percent AER/tax-free variable for 12 months.
Andrea Melville, the director of Current Accounts, Savings and Business Banking at Santander, broke down why the bank is opting to raise rates at this time.
She explained: “We’re pleased to deliver this top-of-market product for our customers, providing the convenience of an easy access account, to help build up their savings.
“We know now more than ever people want their money to go further and this account is one of the ways we are helping customers maximise their savings income.”
Despite this, experts are warning about the hit savings pots are taken due to inflation continuing to be an issue.
In the 12 months to July 2023, the Consumer Price Index (CPI) rate of inflation eased to 6.8 percent, down from the month before.
Lucinda O’Brien, an expert at money.co.uk, emphasised that there is only so far the latest savings interest rates hikes can go in light of high inflation.
Ms O’Brien added: “The Bank of England interest rate can influence all other interest rates as it tries – or, in recent months, fails – to control inflation.
“With the latest rate hike and inflation still high, it is not looking like the situation is going to improve any time soon, so it is important to adjust and build a savings pot to help get through these difficult times and still achieve your long-term financial goals.”
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