Santander has announced that its subdivision cahoot, the UK-based online bank, has increased the interest offered on its Simple Saver account.
Cahoot Simple Saver (Issue 2) is offering savers 5.12 percent AER/gross for 12 months.
The Simple Saver is an easy access account which lets customers deposit as often as they like, as well as withdrawing their funds without any fees or restrictions.
A customer with £10,000 saved in the account would earn £512 a year in interest.
The account can be opened online with a minimum balance of £1. The Simple Saver can be opened as either a single or joint account.
Savers can get 5.12 percent on balances up to £500,000.
To be eligible customers must be a UK resident, aged 16 or over with a valid email address.
Customers who choose to have their interest paid monthly, rather than annually, will earn five percent gross (variable).
Savers can put up to £2million in this account, which previously paid 4.90 percent, but the 5.12 percent rate only applies on savings up to half a million pounds.
Withdrawals can be made at any time from this account, which can be done by transferring another account in online banking. The term of the account is 12 months and on maturity, cahoot will transfer the money into a cahoot Savings Account.
More information about cahoot’s Simple Saver and other savings products can be found on the cahoot website. cahoot is a division of Santander UK plc.
It says: “Interest is calculated daily and can be paid annually or monthly. Once the frequency has been chosen (annual or monthly interest), this can’t be changed.
“We’ll pay the final interest payment to your account on the date it matures. If any interest payment date is on a Sunday, we’ll pay that interest payment to your account on Monday (with the final interest payment available for withdrawal on Tuesday).
“AER is based on funds deposited on the day the account is opened. If you deposit funds after the day the account is opened, the interest you receive may be less than the advertised AER.”
If the rate changes, cahoot will let people know around 60 days before.
Source: Expressnews.co.uk