Santander updates interest rates on its current account, savings and mortgage products

Santander UK has today announced changes to its in-credit interest rate on 1I2I3, Select and Private Current Accounts as well as increases to rates on a range of other non-base rate linked savings products.

•    From 11 August, the 1I2I3, Select and Private current accounts will have an in-credit interest rate increase from 0.75% AER/gross (variable) on balances up to £20,000 to 1.00% AER/gross (variable) on balances up to £20,000. The increase means customers will be able earn up to £200 per year in interest, plus cashback on household bills1 for a £4 monthly fee.  The 1|2|3 Current Account offers £160 switcher cashback and is the only current account on the market to give customers cashback on household bills and interest on their balance.2
•    The Junior ISA will increase from 1.00% to 1.25% from 2 September.
•    The Flexible Saver for Kids account will increase from 0.35% to 0.60% from 2 September.
•    The First Home Saver account will increase from 0.75% to 1.00% from 2 September.
•    The Help to Buy ISA will increase from 0.75% to 1.25% from 2 September.

In addition, following the Monetary Policy Committee decision to increase the Bank of England base rate by 0.50% to 1.75%, Santander UK will make the following changes to its base rate linked products: 

•    All Santander tracker mortgage products linked to the base rate will increase by 0.50% from 3 September. This includes the Santander Follow-on Rate (FoR) which will increase to 5.00%
•    All Alliance & Leicester mortgage products linked to the base rate will increase by 0.50% from 1 September.
•    The Alliance & Leicester and Santander Standard Variable Rates (SVRs) will increase by 0.50% to 5.99% from the beginning of September.
•    Santander savings products that are linked to the Bank of England base rate will increase by 0.50%, effective from 2 September. The products linked to the base rate are the Rate for Life and Good for Life savings accounts. 

Any future changes made to other savings products which are not linked to the base rate, will be communicated to customers separately. 

Santander offers other competitive saving rates, including 2.50% on the Regular eSaver and up to 3.00% on 123 Mini (for children and young adults). 

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The information contained in our press releases is intended solely for journalists and should not be used by consumers to make financial decisions.

Editor’s notes:
1) Santander UK is currently offering 1|2|3, 1|2|3 Lite, Select and Private current account customers double cashback on their gas and electricity bills, as well as on Santander Home and Santander life Insurance policies, paid by Direct Debit from September, for two months. This excludes LPG/Calor gas

Details of cashback on household bills
1% - (capped at £5)    Council tax bills
- Mobile and home phone bills, broadband and paid-for TV packages
- Santander monthly mortgage payments

2% cashback (4% from September for 2 months)    

- 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)

3% cashback (capped at £5)    

- Water bills

The cashback rate will double from 2% to 4% and the monthly cap will double from £5 to £10 per month. Following this offer, the cashback will revert to 2%, capped at £5 per month, on this category.  Customers will receive this additional cashback automatically and cashback on other household bills categories will continue to be paid, at either 1% or 3%, each capped at £5 per month.  To be eligible for cashback, customers must pay in at least £500 per month (excluding internal transfers) and have at least 2 active Direct Debits. Customers must be 18+. 

2) Santander launched this week a £160 switcher cashback on the 1|2|3 Current Account for both new and existing customers. More details here: Santander launches market-leading £160 switcher cashback and double cashback on energy bills | Santander UK  

Santander UK is a financial services provider in the UK that offers a wide range of personal and commercial financial products and services. At 30 June 2022, the bank had around 18,000 employees and serves around 14 million active customers, via a nationwide branch network, telephone, mobile and online banking. Santander UK is subject to the full supervision of the FCA and the PRA in the UK. Santander UK plc customers’ eligible deposits are protected by the FSCS in the UK.
 

Banco Santander (SAN SM, STD US, BNC LN) is a leading commercial bank, founded in 1857 and headquartered in Spain. It has a meaningful presence in 10 core markets in the Europe, North America and South America regions, and is one of the largest banks in the world by market capitalization. Santander aims to be the best open financial services platform providing services to individuals, SMEs, corporates, financial institutions and governments. The bank’s purpose is to help people and businesses prosper in a simple, personal and fair way. Santander is building a more responsible bank and has made a number of commitments to support this objective, including raising over €120 billion in green financing between 2019 and 2025, as well as financially empowering more than 10 million people over the same period. At the end of the first half of 2022, Banco Santander had €1.2 trillion in total funds, 157 million customers, of which 26 million are loyal and 50 million are digital, 9,200 branches and 200,000 employees.