Santander has launched a first of its kind Savings and Investments calculator helping users to understand and compare how the returns on their money could perform in both cash savings and investments.
The calculator, available for free on Santander’s website, asks users how much money they want to put aside, and how long for, to create a graphic1 showing the difference in potential returns between cash savings and investments.
For those new to investing, the calculator highlights that it is a long-term commitment and that the amount of money invested can go down as well as up, while cash savings will provide a more definite return. Users are then able to explore their options, which include both advised and non-advised investments.
Research carried out by Santander found that more than a quarter of people (28%) want to improve their financial know-how as a result of the pandemic2. As the new tax-year approaches, and with data from the Bank of England showing that lockdown continues to drive increases in consumer deposits, with an £18.5 billion increase in January 20213, consumers looking to put money into an ISA will be reviewing their options. However, Santander’s research4 found that people who have never invested before are being put off with one in ten believing it is just for those who are experts in finance, while others believe investing is exclusively for those who know which stocks and shares to pick themselves.
Alexia Kilby, Head of Savings and Investments at Santander UK, said: “With the new tax year approaching, and the change we’ve seen in consumer savings as a result of the pandemic, people looking to put money aside will be thinking about how they can make their money, and their tax-free allowance, work harder for them. Our innovative Savings and Investments calculator will help people be more informed about their options, improve their understanding of investments and help them on the way to deciding the right next step for them.”
Santander has seen increased interest in its investment channels since the pandemic and has seen more women aged under 35 signing up to its service in 2020 than any other audience segment. There are a range of ways customers can invest with Santander with minimum investment amounts starting from a £100 lump sum or £20 a month. Santander’s Stocks and Shares ISA, has, for the third consecutive year been awarded Moneyfacts Best Stocks and Shares ISA Provider.
Santander’s roboadviser – Digital Investment Adviser – asks a series of simple questions to ascertain a customer’s attitude to risk and provides personalised advice on whether investing is suitable for them and, if so, which one of four multi-index funds it is recommended they invest in. Customers don’t need to have any experience in investing to use the Digital Investment Adviser and can start with a lump sum of £500 or opt to invest regular amounts starting from £20 a month.
More confident investors, who want to invest without advice, can select their own investment options through the bank’s Investment Hub. Investors with a lump sum of £100 or looking to invest £20 a month or more can select from over 1,000 funds and manage their investments directly in the hub.
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Notes to Editors
1)
The savings growth is calculated using the current interest rate on Santander’s 123 world eISA (0.1% as at 15 March 2021). The projection does not account for any tax that may be payable on gains. The projected investment figures are modelled on a medium risk Santander fund and take into account the platform service fee and fund charges.
2) Research is drawn from a survey conducted by Opinium research between the 20-24th November 2020. The base size was 2,000 UK adults, and was weighted to be nationally representative.
3) https://www.bankofengland.co.uk/statistics/money-and-credit/2021/january-2021
4) Research amongst a representative sample of 2,003 UK adults conducted by Opinium Research, 17th – 20th August 2018.
Santander UK is a financial services provider in the UK that offers a wide range of personal and commercial financial products and services. At 31 December 2020, the bank had around 21,900 employees and serves around 14 million active customers, via a nationwide branch network, telephone, mobile and online banking. Santander UK is subject to the full supervision of the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA) in the UK. Santander UK plc customers’ eligible deposits are protected by the Financial Services Compensation Scheme (FSCS) in the UK.
Banco Santander (SAN SM, STD US, BNC LN) is a leading retail and commercial bank, founded in 1857 and headquartered in Spain. It has a meaningful presence in 10 core markets in Europe and the Americas, and is one of the largest banks in the world by market capitalization. Its purpose is to help people and businesses prosper in a simple, personal and fair way. Santander is building a more responsible bank and has made a number of commitments to support this objective, including raising over €120 billion in green financing between 2019 and 2025, as well as financially empowering more than 10 million people over the same period. At the end of 2020, Banco Santander had more than a trillion euros in total funds, 148 million customers, of which 22.8 million are loyal and 42.4 million are digital, 11,000 branches and 191,000 employees.