Following the decision by the Bank of England to increase the base rate by 0.25 per cent to 0.50 per cent, Santander has reviewed its variable rates on its saving and mortgage products for existing customers and has announced the following changes today:
- We will be making increases of 0.25 per cent to a number of savings products, including Junior ISA, Flexible Saver for Kids and cahoot savings;
- Other products such as Instant Saver and Everyday Saver will see a reversal of the reductions made following the Base Rate reduction in August 2016. ISA Saver will see an increase of 0.15 per cent for balances up to £10,000;
- Similarly, savings rates will be increased for UK small businesses and charities, back to the same position they were before the Bank of England Base Rate reduction in August 2016 (reversing the rate reductions made in November 2016);
- All savings rates linked to the base rate will increase 0.25 per cent from the beginning of December;
- Santander’s Standard Variable Rate will increase by 0.25 per cent to 4.74 per cent from the beginning of December and the Alliance and Leicester Standard Variable Rate will remain at 4.74 per cent;
- All tracker mortgage products linked to the base rate will increase 0.25 per cent. These new rates will be communicated to customers and used to calculate mortgage repayments from the beginning of December; and
- All loans to UK businesses linked to the base rate will move in line with the change and in accordance with the terms of the deal. New rates will become effective from 1 December.
The 1|2|3 Current Account – will continue to pay 1.5 per cent on balances up to £20,000. With an interest rate on credit balances well above that of most current accounts, the 1|2|3 Current Account represents great value for millions of our customers seeking the flexibility of instant access money.
In addition, Santander has some good value new business savings products – including the Regular eSaver, where we increased the rate last week from 2.50 per cent to 3.00 per cent. Customers can save up to £200 each month for 12 months by a standing order from a Santander current account into a Regular eSaver.
Reza Attar-Zadeh, Head of Customer, Santander said, “Following last Thursday’s decision to increase the Bank of England Base Rate, we have carefully considered our options, and have sought to achieve a balance between rates we offer our savers and borrowers. Despite the continued low interest rate environment we continue to offer compelling propositions for millions of our customers, such as the 1|2|3 Current Account, offering 1.50 per cent on balances up to £20,000 as well cashback for a monthly fee.”
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Santander UK is a financial services provider in the UK that offers a wide range of personal and commercial financial products and services. It has brought real competition to the UK, through its innovative products for retail customers and relationship banking model for UK SMEs. At 30 June 2017, the bank serves around 14 million active customers with c19,500 employees and operates through 826 branches (which includes 61 university branches) and 65 regional Corporate Business Centres. Santander UK is subject to the full supervision of the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA) in the UK. Santander UK plc customers are protected by the Financial Services Compensation Scheme (FSCS) in the UK. All accounts opened with Santander UK plc, Isle of Man Branch have sites in the Isle of Man and therefore are covered by the Isle of Man Depositors’ Compensation Scheme as set out in the Isle of Man Depositors’ Compensation Scheme Regulations 2010 and not covered by the UK Financial Services Compensation Scheme.
Banco Santander is a leading retail and commercial bank, founded in 1857 and headquartered in Spain. It has a meaningful market share in 10 core countries in Europe and the Americas, and is among the world’s top banks by market capitalization. At the end of June 2017, Banco Santander had EUR 1.65 trillion in managed funds, 131 million customers, 13,800 branches and 200,000 employees. Banco Santander made attributable profit of EUR 3.6 billion in the first half of 2017, an increase of 24% compared to the same period last year.
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