Santander increases interest rates across multiple savings accounts

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The bank has confirmed that it is raising the in-credit interest rate across its 123, Select and Private Current Account to 0.50 percent AER. This latest intervention by Santander will be applicable on account balances of up to £20,000. Customers can expect this new interest rate to be automatically applied as of March 28, 2022.

The interest rate on Santander’s 123, Select, and Private Current Accounts is variable.

It means Santander customers will be able to get up to £100 in interest on their account every year.

Santander says there will be no other changes to how the affected accounts work.

On top of this, the £4 monthly fee will remain the same for all customers who access the bank’s current accounts.

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Furthermore, Santander customers will continue to be able to access the preferential rates on the bank’s products through 1I2I3 World5, which offers special deals.

Finally, customers will still be able to earn additional cashback on their debit card spending with Retailer Offers.

As a free service offered by Santander, Retailer Offers allows customers to earn up to 15 percent cashback from many high street retailers.

Anyone who is interested in this offering can switch on Retailer Offers through Online or Mobile Banking,

Customers choose their preferred offers and get cashback when using Santander debit or credit cards.

This will all be in addition to any cashback customers earn on selected household bills paid by direct debit.

As of today, the bank is the only one in the UK to offer customers both cashback on household bills and interest on in-credit balances through current account products.

While useful for savers, any cashback on household utilities is capped at £5 across multiple bill categories.

For example, one percent cashback is offered to customers on council tax, mobile and home phone bills.

This same deal is offered on broadband and paid-for TV packages and monthly mortgage payments to Santander.

Two percent cashback is available on gas and electricity bills which is vital as energy costs are expected to skyrocket next month.

Home and life insurance premiums taken out through Santander are also applicable for this two percent cashback deal.

The only utility which customers are able to get three percent cashback on is household water bills.

Last year, the bank introduced a £130 cashback deal for customers who switch to a Santander current account.

At the time, Hetal Parmar, the head of Banking at Santander UK, explained: “Santander is the only bank to offer customers ongoing value, every single month, by paying cashback on household bills through our 1I2I3 current accounts.

“We’re delighted to also offer £130 cashback to customers who switch their current account to Santander.”

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