Santander UK has launched a new savings account - in a major boots for customers. High street banking giant Santander UK, one of the UK's largest banks alongside the likes of Barclays, HSBC, NatWest and Lloyds, has launched a new limited access savings account following research into easy access withdrawal behaviour.
The Limited Access Saver offers customers immediate access to their money, but there is a limit to the number of fee-free withdrawals. The account offers three per cent AER/2.96 per cent gross (variable) to customers who make no more than two withdrawals each calendar month.
If a customer makes three or more withdrawals in a month, their rate will drop to 1.20 per cent AER/1.19 per cent gross. Andrea Melville, Director of Current Accounts, Savings and Business Banking, Santander said: “Throughout this year we’ve looked to deliver value to our customers with our range of savings products and we continue to build on that with our new Limited Access Saver.
“Most of our easy access savings customers typically make less than three withdrawals a month, so we have designed our new Limited Access Saver with this in mind.” The account can be opened with a minimum of £1 and people can open the account in a branch, via mobile banking or online.
Rachel Springall, finance expert at Moneyfacts, told GB News: “It is worth noting that the account has a term of 12 months and thereafter will transfer to the Everyday Saver account which currently pays a lower rate. With this in mind, it is imperative savers shop around as the end of their account term approaches.
“A few alternative providers are paying more than 2.96 per cent gross / 3.00 per cent AER on an easy access account, and some of which do not pose any restrictions on withdrawals. Savers who have £1 to open an account will find cahoot paying 5.20 per cent gross/AER (on balances up to £3,000), with Cynergy Bank (maximum £1 million) and Hampshire Trust Bank (maximum £250k) both paying a rate of 5.15 per cent gross/AER.
“Santander has been known to pull attractive accounts from sale at short notice, so savers may need to act quickly to take advantage.”