Santander increases interest rate on 1|2|3 current accounts
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:
Council tax bills
Mobile and home phone bills, broadband and paid-for TV packages
Santander monthly mortgage payments
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)
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.