Santander launches savings account with 8% interest

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Santander has brought to the market a new competitive savings scheme which will pay customers 8% interest for the first 12 months.

Not only that, but the bank is also offering a £180 account switch bonus for anyone wanting to move their current account to Santander.

But while the offer on paper seems pretty impressive, customers are being warned to do their research before committing to the new savings accounts.

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Undoubtedly one of the most desirable offers on the market in June 2026, here's all the advantages and disadvantages of the new Santander savings account.

Who can get the Santander savings account with 8% interest?

Currently, the account, which becomes available on Tuesday 30th July, is available to anyone with a Santander current account.

It will also be available to anyone ready to switch their current accounts to Santander where they will also receive the £180 swap bonus.

What are the advantages of the Santander 8% interest savings account?

If you're thinking about moving your money and saving up with this offer, the advantages are as follows:

• 8% interest rate.
• Money can be withdrawn at any point.
• £180 bonus for anyone switching accounts to Santander.
• More appealing to those who are saving smaller amounts each month (£200 maximum)

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What are the disadvantages?

Overall, it is all down to personal preference and the amount you plan on saving but important details to think about are:

• Interest is only on the amount within the account at the time. If you save the £200 maximum each month, you will earn an interest total of £104 interest across the whole year.
• The most you can save a year is £2400 (without interest). So if you want to save more, it's recommended you look at other banks.
• After 12months, the savings interest goes from 8% to 3% which is pretty low. This means it's likely you'll need to move savings accounts by the end of the year.

Experts are warning customers to do their research on rival banks before committing to the Santander savings account.