Review of Santander Regular eSaver

Written by Karen Bryan

santanderUpdate 3 August 2016 – The rate paid to customer opening a new Santander Regular eSaver has dropped from 5% to 3%. That even before the expected 0.25% in the Bank of England Base Rate tomorrow.

The Santander Regular eSaver account pays a variable interest rate of 5%. The maximum monthly payment in to the Santander Regular eSaver is £200, which must be paid by standing order from a Santander current account.

You can make penalty-free withdrawals from your Santander Regular eSaver. You can only operate the account using online or mobile banking.

Yet, perversely, you can only open a Santander Regular eSaver in a branch or by phone. This is annoying. It took the best of 30 minutes for me to set up the account over the phone. Surely an account which can only be operated through online or mobile banking should allow customer to open it online?

Although 5% is a very competitive rate of interest for a savings account, even if you deposit the maximum £200 per month into a Santander Regular eSaver, you’ll only earn around £64 in interest. It’s a pity that the maximum monthly payment isn’t higher, to allow you to earn more interest e.g. the Nationwide Flexclusive Regular Saver permits you to pay in up to £500 a month, and pays the same 5% variable rate as the Santander product.

Rates of interest correct on 15 March 2016.