Santander offers multiple savings account types, but the specific products and rates available depend on which Santander bank you use and where you live
Santander operates in the United States through several separate banking entities — Santander Bank (the main retail bank), Santander Consumer USA, and others — and each offers different savings products. Santander Bank, the largest U.S. division, offers savings accounts alongside checking accounts and money market accounts. However, Santander's savings account lineup, interest rates, and features change regularly and vary by state and branch.
The best way to know what savings accounts are currently available to you is to visit your local Santander branch, call their customer service line, or check their website for your specific state. This article explains how Santander savings accounts typically work, what to expect from the account types they commonly offer, and how to compare them to other banks.
Key Takeaways
- Santander Bank offers savings accounts, but the specific types and rates vary by location and change over time.
- Most Santander savings accounts require a minimum opening deposit and charge monthly maintenance fees unless you meet balance or direct deposit requirements.
- Interest rates on Santander savings accounts are typically lower than rates offered by online banks, so comparing options matters if you prioritize earning interest.
- You can open a Santander savings account in person at a branch, by phone, or online depending on the account type.
- Santander savings accounts are insured by the FDIC up to $250,000, which protects your money if the bank fails.
Common Santander savings account types
Santander Bank typically offers a basic savings account, sometimes called a regular savings account or passbook savings account. This account usually has a low minimum opening deposit (often $25 to $100), earns a small amount of interest, and charges a monthly maintenance fee unless you maintain a minimum balance or set up direct deposit. The interest rate is set by Santander and changes based on market conditions.
Santander also offers money market accounts in some regions, which function as a hybrid between savings and checking. Money market accounts usually pay higher interest than regular savings accounts but require a higher minimum balance to open and to avoid monthly fees. They may come with a limited number of debit card transactions per month.
High-yield savings accounts are less common at Santander branches than at online banks. If Santander offers a high-yield product, it will be clearly labeled and the interest rate will be posted on their website and in branches. Compare this rate to what online banks are currently offering, because online banks typically pay significantly more interest on savings.
Minimum deposits, fees, and balance requirements
Most Santander savings accounts require an opening deposit when you create the account. This is typically $25 to $100 for a basic savings account, though some accounts may require more. This deposit counts toward your account balance and is not a separate fee.
Monthly maintenance fees are standard at Santander savings accounts unless you meet one of these conditions: maintain a minimum balance (often $500 to $1,500, depending on the account), set up direct deposit of your paycheck, or maintain a linked checking account with Santander. If you do not meet any of these requirements, expect to pay $5 to $15 per month in fees.
Some Santander accounts waive fees for customers under a certain age (often 25) or for seniors. Ask about age-based fee waivers when you open an account. Also ask whether maintaining a minimum balance across multiple accounts counts toward the requirement — some banks combine balances, others do not.
How interest works on Santander savings accounts
Santander pays interest on savings account balances, but the rate is typically much lower than rates offered by online banks. The annual percentage yield (APY) is the rate Santander pays you each year, expressed as a percentage. Santander sets this rate and can change it at any time, though they must notify you in advance of significant decreases.
Interest is usually compounded daily and deposited into your account monthly. This means Santander calculates interest on your balance every day, adds it all up at the end of the month, and deposits the total into your account. The more money you keep in the account and the higher the APY, the more interest you earn.
As of the time this article was written, Santander's savings account rates are significantly lower than rates offered by online banks and credit unions. If earning interest is your main goal, research online savings accounts and credit union savings accounts before opening a Santander account. If you value in-person banking and branch access, the lower interest rate may be a reasonable trade-off.
FDIC protection and account safety
Santander Bank is a member of the Federal Deposit Insurance Corporation (FDIC). This means your savings account balance is insured up to $250,000 if the bank fails or closes. If you have multiple savings accounts at Santander, the FDIC protection covers each account type separately up to $250,000, so a regular savings account and a money market account are each insured for the full amount.
FDIC insurance is automatic — you do not need to do anything to activate it. Your money is protected as soon as you deposit it. If you have more than $250,000 to save, you can open accounts at different banks to ensure all your money is insured.
How to open a Santander savings account
You can open a Santander savings account in three ways: in person at a branch, by phone, or online. In-person opening is the most straightforward — bring a government-issued ID, proof of address (a recent utility bill or lease), and your Social Security number. The branch staff will verify your identity, explain the account features and fees, and set up your account on the spot.
To open an account by phone, call Santander's customer service number and ask to speak with an account representative. They will walk you through the process and may mail you a form to sign and return, or they may complete the process entirely over the phone depending on the account type.
Online account opening is available for some Santander savings accounts. Visit the Santander website, select the account type you want, and follow the prompts. You will need to provide your personal information, Social Security number, and proof of address. The process typically takes 10 to 15 minutes, and your account opens immediately or within one business day.
Comparing Santander savings to other banks
Before opening a Santander savings account, compare it to savings accounts at other banks. The main factors to compare are: the interest rate (APY), the monthly maintenance fee, the minimum opening deposit, and the minimum balance required to avoid fees.
Online banks typically offer higher interest rates than Santander but no in-person branch access. Credit unions often offer competitive rates and lower fees, especially if you are a member. Traditional banks like Bank of America, Wells Fargo, and Chase offer rates similar to Santander's but may have different fee structures and minimum balance requirements.
Use a savings account comparison tool or visit each bank's website to see current rates and fees. Calculate the total cost of keeping money in each account for one year — this means subtracting monthly fees and adding interest earned. The account with the highest net value after one year is usually the best choice for your situation.
Frequently Asked Questions
Can I open a Santander savings account online?
Santander offers online account opening for some savings account types, though not all. Visit the Santander website and select the account you want to open — the site will tell you whether online opening is available. If it is not, you can open the account by phone or in person at a branch.
What is the minimum balance required to avoid monthly fees?
The minimum balance varies by account type and location, typically ranging from $500 to $1,500. Check with your local Santander branch or the website for your state to see the exact requirement for the account you want to open. Some accounts waive the fee if you set up direct deposit instead of maintaining a balance.
How much interest will I earn on a Santander savings account?
The interest rate (APY) varies and changes over time. Santander's rates are typically lower than online banks. Check the current rate on the Santander website or ask at a branch before opening an account. Compare this rate to rates at other banks to see whether Santander is competitive for your needs.
Is my money safe in a Santander savings account?
Yes. Santander Bank is FDIC-insured, which means balances up to $250,000 are protected if the bank fails. Your money is insured automatically from the moment you deposit it. If you have more than $250,000, open accounts at different banks to ensure all your money is covered.
Can I withdraw money from my Santander savings account anytime?
Yes, you can withdraw money anytime, but federal law limits the number of withdrawals or transfers you can make from a savings account to six per month. If you exceed this limit, Santander may charge a fee or convert your account to a checking account. Debit card withdrawals at ATMs typically do not count toward this limit.