Santander does not currently offer a dedicated high yield savings account

Santander Bank's standard savings products earn rates well below what you can find at online banks or credit unions. As of now, Santander does not market a high yield savings account under that name or as a separate product tier. If you hold a regular savings account at Santander, you are earning a rate that typically falls between 0.01% and 0.05% annual percentage yield (APY), depending on your account type and balance.

This matters because the difference between Santander's rate and a high yield savings account elsewhere can cost you real money. A $10,000 balance earning 0.01% at Santander generates about $1 per year. The same $10,000 at an online bank offering 4.5% APY generates $450 per year. Over five years, that gap widens to roughly $2,200 in lost earnings.

Santander's savings accounts do offer FDIC insurance up to $250,000 per depositor, which protects your principal. But protection of your money and growth of your money are two different things. You get the first with Santander; you do not get the second at a competitive rate.

Key Takeaways

  • Santander's savings accounts earn between 0.01% and 0.05% APY, which is significantly lower than high yield savings accounts available elsewhere.
  • Online banks and some credit unions currently offer high yield savings rates between 4% and 5% APY, making them a better choice if earning interest is your goal.
  • Your money at Santander is FDIC insured up to $250,000, so you are not taking on risk by keeping it there—you are just forgoing growth.
  • If you use Santander for checking and want to keep savings there too, moving just your savings to a high yield account elsewhere costs nothing and takes a few days.

Why Santander's rates lag behind online banks

Santander operates a large branch network across the United States, which costs money to maintain. Tellers, managers, rent, utilities, and technology infrastructure for thousands of physical locations add up. Online banks have no branches, no tellers, and lower overhead. They pass those savings to customers in the form of higher interest rates on savings.

Santander also makes money by lending deposits out at higher rates. A bank that pays you 0.02% on savings and lends that money out at 6% keeps the difference. Online banks operate on thinner margins and compete primarily on rate, so they pass more of the lending spread back to savers.

This is not unique to Santander. Most traditional brick-and-mortar banks—Bank of America, Wells Fargo, Chase—offer similarly low savings rates. The trade-off is convenience: you can walk into a branch, speak to a person, and deposit cash. If that matters to you, the lower rate is the cost of that service.

Where to find high yield savings if you leave Santander

High yield savings accounts are offered by online banks, credit unions, and a few traditional banks that have modernized their rate structure. Current rates vary but typically range from 4% to 5.35% APY, depending on the bank and the size of your deposit. Rates change frequently, so the exact number you see today may be different in a month.

Online banks that commonly offer high yield savings include Marcus by Goldman Sachs, Ally Bank, American Express Personal Savings, and Discover Bank. Credit unions often offer competitive rates through the CO-OP network, which lets you access ATMs nationwide without paying out-of-network fees. Some credit unions require membership based on where you work, where you live, or membership in an organization; others are open to anyone.

Moving money from Santander to a high yield savings account is straightforward. You provide the new bank with your Santander account number and routing number, and they pull the funds electronically. The transfer typically takes three to five business days. You can keep your Santander checking account open if you use it for other purposes.

What Santander savings accounts do offer

Santander's savings products come in a few varieties: regular savings, money market accounts, and certificates of deposit (CDs). Money market accounts sometimes offer slightly higher rates than basic savings, but still well below high yield rates. CDs lock your money away for a set term—three months, six months, one year, or longer—in exchange for a may provide rate. Santander's CD rates are also low compared to online banks.

The main advantage of keeping savings at Santander is convenience if you already bank there. You can manage everything in one place, deposit cash at a branch, and speak to a banker in person if you have questions. For many people, that simplicity is worth a small rate penalty. For others, especially those who rarely visit a branch, the rate difference is not worth it.

Santander also offers no-fee savings accounts, which is standard across the industry. You will not pay monthly maintenance fees, overdraft fees on the savings account itself, or fees to close the account. The lack of fees does not offset the low interest rate, but it does mean you are not losing money in other ways.

How to compare savings rates across banks

Interest rates on savings accounts change frequently, sometimes weekly. Before moving money, check the current rate at your target bank by visiting their website directly. Do not rely on comparison sites alone, because they update on different schedules and may show outdated rates.

When comparing, look at the APY, not just the interest rate. APY accounts for how often interest is compounded and gives you the true annual return. A bank advertising "4.5% interest" might actually pay 4.51% APY if interest compounds daily. The difference is small but real over time.

Also check the minimum deposit required to open the account and whether the rate applies to all balances or only balances above a certain threshold. Some banks offer their highest rate only on deposits over $25,000. If you have less, you may earn a lower rate.

Keeping checking at Santander while moving savings elsewhere

You do not have to leave Santander entirely. Many people keep a checking account at their local bank for convenience—to deposit checks, withdraw cash, pay bills in person—while moving savings to a high yield account elsewhere. This is a common strategy and costs nothing to set up.

Link your Santander checking account to your new high yield savings account through the bill pay or transfer feature. Most banks let you transfer money between accounts at different institutions for free, though it takes a few business days. You can set up automatic transfers to move money from checking to savings on a schedule that works for you.

This approach gives you the best of both: the convenience and cash access of a local bank for everyday spending, and the growth of a high yield rate for money you are saving.

Frequently Asked Questions

Does Santander have any savings account that earns more than 0.05%?

Santander's money market accounts and CDs may offer slightly higher rates than basic savings, but rates vary by location and account type. Contact your local Santander branch or check their website for current rates. Even their highest-rate products typically earn less than half what online high yield savings accounts offer.

If I move my savings to another bank, do I lose FDIC protection?

No. Any bank insured by the FDIC protects your deposits up to $250,000 per account type per bank. Moving your savings to an online bank with FDIC insurance gives you the same protection as Santander. Check the bank's website to confirm FDIC status before opening an account.

Can I transfer money from Santander to a high yield savings account online?

Yes. Provide your new bank with your Santander account number and routing number, and they will initiate an electronic transfer. The money typically arrives in three to five business days. You can also withdraw cash from Santander and deposit it at the new bank, though this takes longer and requires a trip to a branch.

What happens to my Santander account if I move my savings elsewhere?

Nothing. Your Santander account remains open and active. You can keep your checking account there, continue to use your debit card, and access branches as usual. Closing a savings account does not affect your checking account or credit history.

Are high yield savings accounts safe?

Yes, as long as the bank is FDIC insured. The FDIC may provide is the same whether you bank online or at a branch. Your deposits are protected up to $250,000 per account type. Online banks are regulated by the same federal agencies as traditional banks and must meet the same safety standards.