The bank is contacting affected customers from today. The correspondence explains that the rate will be reduced to 4.2% from 20 May 2024.
The account is no longer open to new customers, but it was a best-buy table-topper when it was launched in September 2023 and was only on sale for just over a week before Santander stopped accepting new applications due to high demand.
The current rate of 5.2% is hard to beat, so it’s probably not worth switching just yet – but you may want to keep an eye out for alternatives, especially once the rate drops in May.
At the moment, the highest-paying easy-access savings account is from Cahoot, which also pays 5.2% on its Sunny Day Saver – but only on balances up to £3,000.
Ulster Bank’s Loyalty Saver pays 5.20% AER, but only on balances over £5,000 – any below that amount receive a 2.25% AER instead.
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Santander’s Edge Saver pays 7% AER but you need a Santander Edge current account to be eligible.
Fixed rate bonds pay slightly more than easy-access savings accounts. MBNA’s Fixed Saver 1 pays 5.27%, while ICICI Bank’s SuperSaver Bond pays 5.21% for six months.
