Santander's savings account rates change monthly, and the rate you earn depends on which account type you hold

Santander offers several savings products, and each one pays a different interest rate. The rate you receive also depends on your account balance, how often you make deposits or withdrawals, and current market conditions. Rates are not fixed—they move up and down based on what the Federal Reserve does with its benchmark rate.

The most common Santander savings products are the Money Market Account, the Regular Savings Account, and promotional accounts that occasionally offer higher rates for a limited time. You can see the current rates for each on Santander's website, or by calling 1-855-728-9900 to speak with a representative. Rates vary by state and by branch, so the number you see online may not match what your local branch offers.

Key Takeaways

  • Santander's savings rates change monthly and vary by account type, balance tier, and location.
  • You can find current rates on Santander's website or by calling their customer service line, since rates differ by state.
  • Money Market Accounts typically pay higher rates than Regular Savings Accounts, but require a larger opening deposit.
  • Promotional rates are sometimes available for new customers, but they usually expire after a set period and revert to standard rates.
  • The interest you earn is taxable income and will be reported to you on a 1099-INT form at the end of the year.

How to find your account's current rate

Log into your Santander online banking account or mobile app and go to your savings account details. The rate should appear on your account summary page. If you do not see it, call Santander directly at 1-855-728-9900 or visit a branch in person.

When you call, have your account number ready. A representative can tell you your exact rate, explain whether you may have access to for any promotional rates, and answer questions about moving money between accounts if you want to chase a higher rate elsewhere.

The difference between Santander's savings account types

Santander's Regular Savings Account is the most basic option. It requires a small opening deposit (often $25 or less) and has no monthly fee if you maintain a minimum balance. The interest rate on this account is typically the lowest Santander offers, usually well below 1% annually in recent years.

The Money Market Account requires a higher opening deposit—often $2,500 or more—but pays a higher rate. This account also comes with a limited number of withdrawals per month (usually six) before fees explore. If you have a larger sum you do not need to access frequently, this account may earn you more interest.

Santander occasionally runs promotional offers for new customers, such as a higher rate for the first three to six months. These rates are advertised on their website and in branches. Once the promotional period ends, your rate drops to the standard rate for that account type.

Why Santander's rates are lower than online banks

Santander is a traditional bank with physical branches in most states. Online-only banks like Marcus, Ally, and Discover typically pay higher savings rates because they have lower overhead costs—no branch staff, no real estate, no ATM networks to maintain. Santander passes some of those costs to customers in the form of lower rates.

If earning the highest possible interest is your priority, you may earn more at an online bank. If you value the ability to walk into a branch, deposit cash, or speak with someone in person, Santander's lower rates are the trade-off for that convenience.

How interest is calculated and paid

Santander compounds interest daily and deposits it into your account monthly. This means the interest you earn each day is added to your balance, and the next day's interest is calculated on the new, slightly larger balance. Over time, this compounding effect means you earn a small amount of interest on your interest.

The actual amount you earn depends on your balance and the annual percentage yield (APY) for your account. For example, if you have $10,000 in an account paying 0.05% APY, you would earn about $5 per year. If rates rise and your account moves to 0.10% APY, you would earn about $10 per year on the same balance.

What happens to your interest if rates change

When the Federal Reserve raises or lowers its benchmark rate, banks adjust their savings rates in response. Santander may raise your rate, lower it, or leave it unchanged—the bank decides. You will not be asked to approve the change; it straightforward takes effect on your account.

If Santander lowers your rate, you have the option to move your money to another bank. There is no penalty for closing a savings account. If you are unhappy with your rate, compare what other banks are offering and move your balance if you find a better option.

Tax reporting and what you owe on interest earned

The interest you earn on a Santander savings account is taxable income. At the end of each calendar year, Santander will send you a 1099-INT form showing how much interest you earned. You must report this amount on your federal tax return.

The amount of tax you owe depends on your total income and tax bracket. If you earned $50 in interest, you do not owe $50 in taxes—you owe tax on that $50 at your marginal rate, which could be 10%, 22%, or higher depending on your situation. Keep the 1099-INT form with your tax records.

Frequently Asked Questions

Where do I find the APY for my Santander savings account?

Log into your online account or mobile app and view your account details. You can also call 1-855-728-9900 or visit a branch. The APY is listed on your account statement and in your account summary online.

Does Santander charge a fee if my balance falls below the minimum?

It depends on the account type. Regular Savings Accounts typically have no monthly fee. Money Market Accounts may charge a monthly fee if your balance drops below the required minimum, usually $2,500. Check your account agreement or call to confirm the fee structure for your specific account.

Can I move my money to a higher-paying Santander account without closing my current account?

Yes. You can open a new account and transfer money between them without closing the original account. However, there is no advantage to keeping both open if one pays more interest. Close the lower-paying account once the transfer is complete to simplify your finances.

Will Santander notify me if my rate changes?

Santander is required by law to notify you of rate changes, usually by email or mail. However, the notification may arrive after the change takes effect. Check your account regularly or set up rate alerts if your bank offers them.

Is my money safe in a Santander savings account?

Yes. Santander is a member of the Federal Deposit Insurance Corporation (FDIC). Your deposits are insured up to $250,000 per account type per depositor. If the bank fails, the FDIC will cover your balance up to that limit.