The banking giant confirmed the in-credit interest rate on its 1|2|3, Select and Private Current Account will rise from 0.30% AER/gross to 0.50% AER/gross (variable) on balances up to £20,000.

The new rate of interest will be applied automatically to accounts from 28 March 2022.

This means customers will be able to receive up to £100 in interest on their account each year, up from the current £60.

It confirms there are no other changes to the account, and the £4 per month fee remains.

Customers can continue to earn cashback on selected household bills paid by direct debit, capped at £5 in each of the following categories:

1% cashback:

Council tax bills
Mobile and home phone bills, broadband and paid-for TV packages
Santander monthly mortgage payments

2% cashback:

Gas and electricity bills
Santander Home Insurance premiums (policies administered and underwritten by Aviva Insurance Limited)
Santander Life Insurance premiums (policies administered and underwritten by Aviva Life & Pensions UK Limited)

3% cashback:

Water bills.

There are no changes to the Santander 1|2|3 Lite current account where customers earn cashback on household bills only for a £2 a month fee, or the Everyday Account which is a standard current account without a monthly fee.

For new customers switching to Santander’s 1|2|3 Current Account, they can earn £140 cashback, as long as they switch via the Current Account Switch Service (CASS), pay in £1,000 into the account, set up two active direct debits, pay the £4 a month fee and log on to online or mobile banking.