Santander customers can now earn 5% interest on a new regular savings account, so Moneywise evaluates how good the bank's new offer is.
The Regular eSaver account is available to new and existing Santander current account (123 or otherwise) customers. (See our Current accounts roundup
for the best buys.)
Savers can stash up to £200 a month into the Regular eSaver by standing order, but only from a Santander account.
Unlike most regular savings accounts, customers can change their contribution each month, providing they don't go over the £200 limit. Save too much, and Santander says it 'reserves the right' to switch the account to one paying 0.25% interest.
The account can be opened in branch or by phone, but once open money can be managed online or via Santander's mobile banking app. Savers can withdraw their money at any time without penalty.
However, the catch is that the account only pays 5% interest for the first year. After that, any money saved is transferred to an Everyday Saver account, which pays a paltry 0.25%.
This is Santander's highest paying account and as with all regular savers, while it's not much help as a home for existing savings, it's a good way to get started.
However, it's not the best regular saver
on the market. M&S Bank and First Direct both pay 6% on regular savings accounts to existing current account holders, while TSB and Nationwide both match Santander's 5% regular saver account for their own current account customers.
Finally, for people saving for a house deposit, a Help to Buy Isa could be a better option. These let first time buyers save up to £200 a month, plus a one-off £1,000 deposit when the account is first opened.
The best Help to Buy Isas (from Santander and Halifax) pay 4%, which is slightly lower than the Santander regular saver. But crucially, the government will add £1 for every £4 saved (up to a maximum £3,000 bonus) in a Help to Buy Isa. See our Top Help to Buy Isas
round-up for more information on how they work.