Santander ups interest rate on current accounts
The banking giant confirmed the in-credit interest rate on its 1|2|3, Select and Private Current Account will rise from 0.50% AER/gross (variable) to 0.75% AER/gross (variable) on balances up to £20,000.
The new rate of interest will be applied to accounts from Monday 20 June 2022.
This means customers will be able to earn up to £150 in interest on their account each year, up from the current £100.
Hetal Parmar, head of banking and savings at Santander UK, said: “We’re pleased to be able to increase the interest rate on our popular 1|2|3 Current Account. Customers can continue to earn cashback on regular household bills plus cashback on card spending at a range of retailers through our Retailer Offers programme, and now, increased interest on their balance.”
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 (no in-credit interest) for a £2 a month fee, or the Everyday Account which is a standard current account without a monthly fee.
However, following yesterday’s Bank of England decision to raise the base rate from 1% to 1.25%, Santander savings products that are linked to the base rate will increase by 0.25% from Monday 4 July. This includes the Rate for Life and Good for Life savings accounts.