Santander cuts the rate on its 5.2% easy-access savings rate which proved popular last September

Savers who rushed to open Santander’s 5.2 per cent best buy easy-access deal last September will soon see the rate on their account fall. 

On 20 May, Santander will chop the rate on its limited easy-access saver to 4.2 per cent, with the banking giant contacting customers in recent days. The account is no longer open to new savers. 

Santander launched the blockbuster account on 4 September 2023 and it lasted until 17 September 2023.

It was pulled from the market five days early due to strong demand.   

Up for the chop: Santander’s best buy limited easy-access saver will be cut to 4.2% from 5.2% on 20 May 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 website MoneyComms said: ‘The message from Santander is pointing towards the potential base rate cuts that are expected to happen later this year.

‘There’s no firm consensus on a date when the rate cutting will commence, however with inflation figures out next Wednesday and the Bank of England meeting on the Thursday 21 March, we might get more of a clue when this is likely to happen.

‘Once the base rate starts on a downward trajectory, easy-access savings accounts are likely to follow suit.’

James Hyde, of Moneyfactscompare, said: ‘Easy-access rates have held very steady in recent months, and it’s hard to predict whether this news may precipitate wider activity in this space.’

Santander said: ‘If you’re not happy with this change, you can close your account without any cost before or after the change becomes effective. 

‘This change takes effects on May 20 2024, so there’s plenty of time for you to decide if the account is still right for you.’ 

Stick or twist? 

Savers can currently open easy-access account paying 5 per cent – but it is worth pointing out the 4.2 per cent deal is still better than Santander’s main big banking rivals.

-See our independent best buy easy-access savings tables 

After 12 months, the easy-access account matures into an everyday saver paying just 1.05 per cent and as this is a variable account.

The best easy-access account currently pays a rate of 5.11 per cent and is offered by Monument Bank. The minimum deposit for this account is £25,000. 

Savers must download Monument’s 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. 

You are limited to three withdrawals a year with this account though and the rate falls to 2 per cent if you make more than three withdrawals. 

The account can only be opened online on Virgin Money’s website. 

Secure Trust Bank has an easy-access account paying 5.1 per cent. The minimum deposit is £1,000 and it can be opened online on Secure Trust Bank’s website. 

Charter Savings Bank’s easy-access account pays 5.08 per cent with a minimum deposit of £5,000 while Kent Reliance offers an easy-access account paying 5.07 per cent on deposits starting from £1,000. 

Both of these accounts can be opened online and savers can get the Kent Reliance easy-access in a branch. 

James Hyde adds: ‘Santander’s Easy Access Saver Limited Edition (Issue 3) is closed to new customers, and despite this rate reduction still pays considerably more than the market average for easy access accounts.

‘As always, savers should consider all options available to them and be willing to move their money if they could see better returns elsewhere.’