Santander UK has launched a new regular saver account paying 8% interest.
The account has a rate of 8.00% AER (annual equivalent rate), which includes a 5.00% variable bonus for the first 12 months.
The bank said it is available to all Santander current account customers, including its fee-free Everyday current account customers.
Customers can save up to £200 per month in the account, which is available from Tuesday.
After 12 months, the interest reduces to a variable rate of 3.00%.
Santander said customers can make withdrawals when they wish, without penalties.
Some savers with a big lump sum of more than £200 to put away may consider searching for a deal that may have a lower rate but allows bigger initial deposits.
New customers to Santander can also potentially benefit from the bank’s £180 current account switching offer, if they move over to the bank, subject to terms and conditions.
The minimum balance for the regular saver is £1, and Santander said the account is limited to one account per customer.