Savings accounts: banks offering 2.5% interest – which are the best in the UK? | Personal finance | Finance
Banks, such as Nationwide Building Society and Santander, recently announced rate hikes in the wake of the wider UK cost of living crisis. Savers across the country are looking for the best accounts to put their money in in hopes of getting the best returns. Nationwide and Santander are two such banks, with the latter confirming a 2.5% interest rate hike earlier this week.
The bank’s new 123 Regular e-Saver rewards savers with an interest rate of 2.5% AER/Gross for 12 months.
According to Santander, it would be one of the best regular savings accounts currently on the market from a major bank.
Customers will be able to access, view and manage their money online or through Santander’s mobile app.
Santander’s latest savings account will be made available to those who are already 123, Private and Select current account customers aged 16 or over.
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Funds must be paid into the savings account via a standing order from an existing Santander 123, Select or Private current account.
Those interested in Santander’s latest offer will be able to transfer up to £200 per month.
Any money paid into the account and then withdrawn from it will go towards the £200 monthly limit.
This £200 monthly threshold means savers will see a maximum balance of £2,400 per year.
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Hetal Parmar, head of banking and savings at Santander UK, stressed that this latest deal would add “even more value” to customers.
Mr Parmar said: “We understand that saving for the future remains important to many customers, and following the recent interest rate increase on our 123 checking account, we are pleased to offer even more value to 123 World customers with our new Regular e-Savers.”
By comparison, Nationwide’s one-year triple access online ISA interest rate has been increased by 0.80%.
The building society also promised to raise interest rates on some of its other savings products.
All accounts can be opened and managed online through the Website, Internet Bank and Mobile Banking App and have a minimum operating balance of £1.
Tom Riley, Director of Banking and Savings at the Nationwide Building Society, said: “Many savers will be looking to use their ISA allowance at the start of the new fiscal year.
“Our latest Triple Access Online ISA offers one of the highest rates on the market and will appeal to those looking to save with a brand they know and trust.
“This ISA accepts transfers, so savers will benefit from Nationwide’s transfer promise ISA, which sees the company pay interest from the day it receives the request, so that savers do not lose interest during that the transfer is in progress.”