MoneySavingsA regular savings account allows savers to put aside a certain amount of money each month in exchange for a higher interest rate11:58, 23 Jun 2026Santander launched a new regular saver account that pays 8% interest.‌A regular savings account allows savers to put aside a certain amount of money each month in exchange for a higher interest rate.‌The new Santander account comes with a rate of 8% which includes a 5% bonus for the first 12 months. After 12 months, the rate reduces to 3%. The rates are variable, which means they can be changed.‌Santander customers save up to £200 a month through this regular saver, meaning you maximum they can build up with interest after one year is £2,504, then £5,018 in year two.Customers can make withdrawals without penalties, but only by moving the money to a Santander current account.‌The Regular Saver is exclusively available to all Santander current account customers.João Soares, Head of Savings at Santander UK said: “We know customers want savings accounts that are easy to understand, offer a competitive rate and deliver value.“That’s why our new Regular Saver rewards customers with a market leading rate, while supporting customers’ who want to build up a habit of saving regularly.‌“New customers who switch their current account to us using the Current Account Switching Service can enjoy even more benefits, such as £180 to save or spend.”Santander isn't the only bank offering a regular saver. Zopa pays 7.1% variable for six months on up to £300 a month.First Direct has a 7% regular saver fixed for one year, with deposits of up to £300 a month, while Co-op Bank also offers 7% but the amount you can save each month is slightly less at £250.‌In terms of normal easy-access saving accounts, the best rate available right now is 5%. Revolut pays 5% to new customers for six months, which includes a 2.9% variable rate and a six month 2.1% bonus rate.Cahoot also offers a 5% rate on up to £3,000. The top one-year fixed rate account is 4.81% from StreamBank, while for a five-year fixed rate you can get 4.9% from Afin.If you are basic-rate (20%) taxpayer then you can earn up to £1,000 in savings interest each tax year before you start to pay tax on interest you've earned.Article continues belowThis is known as the Personal Savings Allowance. For higher-rate (40%) taxpayers, the Personal Savings Allowance is £500 every tax year.Additional rate taxpayers (45%) don't get any Personal Savings Allowance. If you earn below the personal allowance of £12,570, there is a £5,000 starting rate for savings.When you start to earn above this amount, you lose £1 of your £5,000 starting rate for savings for each £1 you earn above the personal allowance.Choose Daily Mirror as a 'Preferred Source' on Google News for quick access to the news you value.‌Interest ratesSavings