Is it price paying the £3 month-to-month charge for this excessive rate of interest?
The Santander Edge Saver pays 6%, which is increased than every other easy-access account proper now.
However there are drawbacks, together with the requirement to open a Santander Edge current account (which has a month-to-month charge), a restricted stability that earns curiosity and a bonus that ends after 12 months.
If you take all that into consideration, simply how a lot will you earn? Right here’s our evaluation.
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What’s the Santander Edge present account?
The important thing requirement for the Edge Saver account is you have to have a Santander Edge present account. Opening this be topic to a credit score rating – one thing you don’t want to consider with most financial savings accounts.
The account itself can earn you cashback on some spending and payments. Except you’ve already obtained the now-defunct Santander 123 present account, that is most likely the easiest way to earn slightly in your key payments. Although at 1% don’t get too excited.
Cashback is capped at £10 a month. Regardless that meaning the potential to earn £120 a yr, I don’t suppose you really will as a result of your spend on payments is probably going decrease – as my analysis shows.
And one other large cause you’ll get much less is the £3 month-to-month charge. That £36 a yr will wipe out a lot of the cashback you earn in your payments. So why trouble, effectively if the £36 is accounted for, it means you’ll be getting the complete 6% in your financial savings within the linked Edge Saver.
Are you able to keep away from the Santander Edge £3 charge?
In the event you don’t need to earn cashback on the Santander Edge present account, you may be capable to keep away from the £3 charge altogether.
So long as you don’t arrange any direct debits, you received’t get charged every month, however you’ll nonetheless be capable to open up the Edge Saver and earn the complete 6%.
Nevertheless, Santander reserves the correct to maneuver you off the Edge present account when you don’t meet the factors, which might lose you entry to the Edge Saver too.
What’s the Santander Edge Saver?
In case you have the Edge present account you’ll be capable to open up a Santander Edge Saver account.
The Edge Saver pays a 6% AER rate of interest, however that incorporates a 2% bonus for 12 months, so it’ll drop to 4% after a yr (although as the speed is variable it might go up or down on this time).
Word the speed has modified just a few instances. when you utilized for the account within the 12 months earlier than 1 August 2024 you’ll nonetheless get 7% till the yr is over, after which it’ll additionally drop to 4.5%. In the event you had it between 1 August 2025 and 26 March 2025 the 12 month bonus was 1.5%, that means a drop from 6% to 4.5% after a yr.
The curiosity can also be solely on balances of as much as £4,000. Something within the account above this may earn nothing in any respect. Which means when you’ve got the complete £4,000 saved you’ll get the gross price of 5.84%. It make sense to withdraw curiosity every month on this case and put into one other account paying a good price.
The joint account hack
Every particular person is allowed just one Edge Saver per Edge present account, however there’s a means you may be capable to get extra.
Joint Edge account holders can get one saver every though they’d have only one present account. That helps restrict the influence of the charge on financial savings held by the couple, so that you’ll earn much more.
And you could possibly every have a private account as effectively. So between the 2 of you, that could possibly be 4 Edge savers. Nevertheless, that could possibly be three a lot of the charge – until you keep away from it as detailed above.
The second yr hack
One other hack will allow you to get the highest price once more after 12 months. Slightly than simply maintain your current Edge Saver open on the decrease price, shut it down.
Then after just a few days you’ll be capable to apply for a brand new Edge Saver, which ought to embody the 12 month bonus.
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How a lot curiosity will you earn within the first yr?
In the event you cowl or don’t pay the charge
Assuming you’re accounting for the charge towards the cashback or are avoiding it being charged, you’ll get the complete 6% AER again in your financial savings.
In case you have the complete £4,000 saved within the account for a yr, the curiosity received’t compound, so that you’ll earn the gross price of 5.84%, and make £233.60 in curiosity within the first yr. That’s fairly respectable proper now.
Within the tables beneath we’ve proven the overall you’ll make within the second column relying on how a lot you’ve got saved and what number of Edge Savers you’ve got open.
If it’s essential issue within the charge
Nevertheless it’s not all the time potential to cancel out the Edge present account charge. You may need been compelled to arrange direct debits for a switching deal as an illustration. In that case then you definately’ll must deduct it out of your earnings.
The tables beneath present how a lot you’d earn on totally different balances after the charge and the true rate of interest when that occurs.
I’ve additionally cut up the evaluation to point out how this builds if you’ll be able to open up further Edge Savers by having a joint Edge present account, or a mixture of private and joint accounts.
One Edge account with one Edge Saver
With out the charge, 6% is among the highest-paying choices on the market. Nevertheless it drops rather a lot when you do must account for £3 a month.
Importantly, don’t have lower than £600 in there as you’ll be shedding cash! I’d counsel you additionally need to look elsewhere when you’ve got £3,000 or much less in financial savings.
| Quantity saved | Annual Curiosity | Curiosity after £36 charge | Efficient rate of interest |
| £500.00 | £30.00 | -£6.00 | -0.60% |
| £1,000.00 | £60.00 | £24.00 | 2.40% |
| £1,500.00 | £90.00 | £54.00 | 3.60% |
| £2,000.00 | £120.00 | £86.00 | 4.3% |
| £2,500.00 | £150.00 | £114.00 | 4.56% |
| £3,000.00 | £180.00 | £144.00 | 4.80% |
| £3,500.00 | £210.00 | £174.00 | 5% |
| £4,000.00 | £233.60 | £197.60 | 4.94% |
One joint Edge account with two Edge Savers
In fact when you’ve got the joint account as a substitute you’ll be able to open two Edge saver accounts and pay only one charge. Then the speed begins to enhance, as this desk beneath reveals.
The quantity saved is the cumulative quantity throughout two savers, though you’d solely be allowed as much as £4,000 in every one.
| Quantity saved | Annual Curiosity | Curiosity after £36 charge | Efficient rate of interest |
| £4,500.00 | £270.00 | £234.00 | 5.20% |
| £5,000.00 | £300.00 | £264.00 | 5.28% |
| £5,500.00 | £330.00 | £294.00 | 5.35% |
| £6,000.00 | £360.00 | £324.00 | 5.40% |
| £6,500.00 | £390.00 | £354.00 | 5.45% |
| £7,000.00 | £420.00 | £384.00 | 5.49% |
| £7,500.00 | £450.00 | £414.00 | 5.52% |
| £8,000.00 | £467.20 | £431.20 | 5.39% |
One private Edge and one joint Edge account with three Edge Savers
You possibly can construct on this once more when you’ve got one other £4,000 to avoid wasting by including a private account alongside the joint account to open one other Edge Saver – although you’ll be doubling the charge to £72 a yr.
| Quantity saved | Annual Curiosity | Curiosity after £72 charge | Efficient rate of interest |
| £8,500.00 | £510.00 | £474.00 | 5.58% |
| £9,000.00 | £540.00 | £504.00 | 5.6% |
| £9,500.00 | £570.00 | £534.00 | 5.62% |
| £10,000.00 | £600.00 | £564.00 | 5.64% |
| £10,500.00 | £630.00 | £594.00 | 5.65% |
| £11,000.00 | £660.00 | £624.00 | 5.67% |
| £11,500.00 | £690.00 | £654.00 | 5.68% |
| £12,000.00 | £700.80 | £628.80 | 5.24% |
Two private and one joint account with 4 Edge Savers
Or when you actually go to city – and pay the charge thrice with a joint account and a private account every you’ll be able to open up a complete of 4 Edge Savers. Clearly one in every of these account charges could be coated by cashback.
| Quantity saved | Annual Curiosity | Curiosity after £108 charge | Efficient rate of interest |
| £12,500.00 | £750.00 | £714.00 | 5.71% |
| £13,000.00 | £780.00 | £744.00 | 5.72% |
| £13,500.00 | £810.00 | £474.00 | 5.73% |
| £14,000.00 | £840.00 | £804.00 | 5.74% |
| £14,500.00 | £870.00 | £834.00 | 5.75% |
| £15,000.00 | £900.00 | £864.00 | 5.76% |
| £15,500.00 | £930.00 | £894.00 | 5.77% |
| £16,000.00 | £934.40 | £826.40 | 5.17% |
Be careful for tax on a number of Edge Savers
In case you have a number of separate Edge Savers, there’s a threat the speed will scale back once more because of tax. Don’t neglect the tax-free Personal Savings Allowance is barely £1,000 or £500, relying in your tax bracket.
Which means any earnings over these quantities can be taxed at 20% and 40% respectively. Plus the PSA is barely on earnings earlier than the charge.
Nevertheless, for the reason that joint account curiosity can be shared 50/50 it means solely increased price tax paying {couples} with 4 Edge Savers and the complete £16,000 saved might want to fear an excessive amount of – until you’ve got financial savings elsewhere which additionally contribute to your tax-free allowance.
How does it examine to different financial savings accounts?
You possibly can’t get shut to six% on a lump sum wherever else proper now, although common savers do pay extra, with accounts as much as 7%.
If you’re paying the charge it’s possible you’ll be higher with an account with a decrease AER, however pays you extra general.
Is Santander Edge Saver any good?
Andy’s Evaluation
Regardless of the drop from 7% to six% final yr, while you examine the headline rates of interest it’s a very respectable price, that’s at present effectively above the remaining.
Nevertheless, while you issue within the £36 charge it does imply it’s not as robust as others – although charges will fall elsewhere too.
And when you add in further present accounts to provide you entry to extra Edge Savers you’ll nonetheless be shut to five.8% on balances as much as £16,000.
Plus, keep in mind that 6% price is just for 12 months.
Abstract
Santander Edge Saver (6%)
| Account title | Edge Saver |
| Required present account | Santander Edge present account – review here |
| Month-to-month charge | £3 (on the present account) |
| Rate of interest | 6% AER (drops to 4% after 12 months) |
| Max financial savings curiosity paid on | £4,000 |
| Withdrawals | Quick access |
| A number of accounts | One per particular person per present account (so you could possibly have two Edge Savers with a joint present account along with one other with your personal Edge present account) |
| Necessities | Should have Santander Edge present account. |
How one can get a Santander Edge Saver account
You’ll must open up the Santander Edge account – right here’s my full review. Word this isn’t out there to prospects with the Edge Up present account.
There’s additionally the possibility to get an additional £10 to £20 cashback while you first apply for the present account (particulars beneath).
Quidco & TopCashback: As much as £20 while you open an Edge account
In the event you apply for the Santander Edge account by way of cashback websites Quidco or TopCashback there’s usually an additional you’ll be able to earn on prime, usually between £10 and £20 (the quantity varies).
In the event you’re not already a buyer of both website then ensure you sign up for a welcome offer first, price as much as £17 – although this will’t be used at the side of the Santander provide so that you’ll must make a purchase order elsewhere first.
