Santander has launched a new savings account that offers big interest - and you only need £1

High street and online banking giant Santander has launched a new savings account that will boost peoples' money by a whopping 2.5%. The bank’s new 123 Regular e-Saver will be made available to both new and existing customers from tomorrow - April 6.

You only need £1 to start up an account, and Santander says it's one of the best regular savings accounts for consumers currently on the market from a high street bank.

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This new savings account will offer those looking to boost their finances a fixed rate of 2.5 percent interest AER/Gross for 12 months, says the Express.

Through the 123 Regular e-Saver, customers will be able to access, view and manage their money either online or through Santander’s mobile app. It will be made accessible to those who are existing 123, Private and Select current account customers, who are 16 or over.

Any funds must be paid into the savings account via standing order from an existing Santander 123, Select or Private current account. Customers of the bank will be able to transfer up to £200 per month into Santander’s latest savings offering.

It should be noted that any money which is paid into, and later withdrawn from, the account will go towards the £200 monthly limit.

Overall, this £200 monthly threshold means that savers will see a maximum balance of £2,400 a year.

Towards the end of the 12-month term, the balance, including any interest acquired, will be paid back into the bank’s current account from which the standing order was paid from.

However, if the saver's standing order is in place when the Regular eSaver matures, the account’s final balance and interest will be moved into an Everyday