Earlier this week, the bank announced the Santander Edge current account, as well the easy-access linked savings account, Santander Edge saver. This comes as many financial institutions are raising interest rates to help their customers get better returns on their savings. However, Santander has confirmed it has withdrawn its 1|2|3 Lite savings range from public sale, which means it will no longer be accessible to new customers.
The bank has confirmed that this decision will have no impact on existing customers.
Through Santander Edge, customers get access to the exclusive linked easy-access savings account, Santander Edge saver.
This particular account offers an interest of four percent AER / 3.93 percent gross (variable) on balances up to £4,000.
The bank also includes a 0.50 percent AER (variable) bonus rate onto the savings account for the first 12 months from opening.
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Customers get one percent cashback, which is capped at £10 a month, on important grocery shopping and transport-based debit card spending through the Santander Edge current account.
On top of this, one percent cashback is offered on household bills which are paid via Direct Debit.
This cashback deal covers council tax, gas and electricity, mobile, landline, broadband and paid-for TV deals.
Overall, the bank estimates that Santander Edge current account and saver will allow customers to earn up to £20 in cashback and £13.10 in interest per month.
Combined with the four percent interest rate, the financial institution will be hoping this will be enough to keep savers doing business with Santander.
Enrique Alvarez, the chief customer officer of the bank’s UK operations, shared why the bank has launched this new product with a favourable interest rate for customers compared to others on the market.
Mr Alvarez explained: “We’re excited to be able to unveil Santander Edge, designed around what we know our customers want from their bank. We’ve created a new account to help customers make the most of their money today and save for a better tomorrow.
“Building on our focus on cashback, we will be rewarding them for their essential spending, whether that’s the weekly supermarket shop or travelling to work, and their household bills – particularly relevant given current pressures.
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“The exclusive saver also provides a preferential rate for people looking to earn interest on their easy-access savings. Added to this, we’ve enhanced our app, with more in-app benefits being rolled out over the coming months.”
October’s Consumer Price Index (CPI) rate of inflation came to 11.1 percent, which is a 41-year high.
To address this situation, the Bank of England’s Monetary Policy Committee (MPC) has raised the country’s base rate to three percent.
While Santander and other banks have passed this rate increase onto their customers, savers are still seeing their returns diminished as the UK continues down the path to recession.
Lucinda O’Brien, a savings expert at money.co.uk, discussed what people can do to make their savings and finance go further despite the detrimental effects originating from inflation.
She said: “Many people choose to save or invest their money to protect their wealth. However, you should consider your savings goals before you choose a savings product to ensure you’re getting the most from it.
“For short-term savings, you might want a savings account where your money is easily accessible, such as an instant access savings account or a cash ISA.
“If you’re thinking more long-term, such as saving for retirement or a major life purchase such as a home, an investment ISA is a good option. If you’re unsure about how to go about your savings, it’s a good idea to consult a financial advisor before you make any decisions.”