Table of Contents
- Santander lowers the rate of its easy-access best-buy account to 4.2%
- The cut will take place on May 20, 2024.
- Five of the best easy-access accounts to switch that pay 5% or more
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Savers who rushed to open Santander’s easy access 5.2 per cent deal last September will soon see the rate in their account drop.
On May 20, Santander will reduce the interest rate on its limited easy-access savings to 4.2 percent, and the banking giant has been in contact with customers in recent days. The account is no longer open to new savers.
Santander launched the successful account on September 4, 2023 and it lasted until September 17, 2023.
It was taken off the market five days earlier due to strong demand.
Up to par: Santander’s Best Buy limited easy access savings will be reduced from 5.2% to 4.2% on May 20, 2022.
Santander said the cut is due to “expected changes in the interest rates we receive,” pointing to expectations of a base rate cut later this year.
Andrew Hagger, founder of the MoneyComms website, said: ‘Santander’s message points towards potential base rate cuts expected to come later this year.
‘There is no firm consensus on a date when the rate cut will begin, however, with inflation figures released next Wednesday and the Bank of England meeting on Thursday March 21, we could have more clues as to when it is. this is likely to happen.
“Once the base rate starts to decline, easy-access savings accounts are likely to follow suit.”
James Hyde of Moneyfactscompare said: “Easy access rates have remained very stable in recent months and it is difficult to predict whether this news may precipitate broader activity in this space.”
Santander said: ‘If you are not happy with this change, you can close your account free of charge before or after the change comes into effect.
“This change will take effect on May 20, 2024, so you will have enough time to decide if the account is still right for you.”
Paste or twist?
Currently, savers can open easy access accounts by paying 5 per cent, but it is worth noting that the 4.2 per cent deal is still better than that of Santander’s main banking rivals.
-See our easy-to-access independent Best Buy savings charts
After 12 months, the easy access account matures into a daily savings account that pays just 1.05 percent and is a variable account.
The best easy access account currently pays a rate of 5.11 percent and is offered by Monument Bank. The minimum deposit for this account is £25,000.
Savers must download the Monument app to open and manage the account.
Virgin Money’s easy access account also pays 5.11 per cent and has a minimum deposit of £1.
However, with this account you are limited to three withdrawals per year and the rate drops to 2 percent if you make more than three withdrawals.
The account can only be opened online on the Virgin Money website.
Secure Trust Bank has an easy-access account that pays 5.1 percent. The minimum deposit is £1000 and can be opened online on the Secure Trust Bank website.
Charter Savings Bank’s easy access account pays 5.08 per cent on a minimum deposit of £5,000, while Kent Reliance offers an easy access account that pays 5.07 per cent on deposits from £1,000.
Both accounts can be opened online and savers can get easy access to Kent Reliance at a branch.
James Hyde adds: ‘Santander’s limited edition Easy Access Saver (Issue 3) is closed to new customers and, despite this fee reduction, still pays considerably more than the market average for easy access accounts.
“As always, savers should consider all available options and be willing to move their money if they could see better returns elsewhere.”