Santander has announced today that it plans to cut the interest rate on its 123, Select and Private Current Accounts from their current rates of 0.60% to 0.30%, which would mean customers depositing the maximum £20,000 would lose £60 per year in interest.
The interest rates on both these accounts are set to be cut on 12 April 2021. Santander has also revealed that it will be lowering the monthly fee on these accounts from their current amount of £5 per month to £4, which will save customers £12 over a 12-month period.
Explaining why Santander has decided to make these rate cuts, Susan Allen, CEO, Retail and Business Banking at Santander, said: “With the Bank of England base rate remaining at its lowest level on record, and significant recent reductions in interest rates on current and savings accounts across the industry, we have taken the difficult decision to reduce the interest rate on our 1I2I3, Select and Private Current Accounts. However, by lowering the monthly fee, we’ve ensured the accounts continue to provide customers with long term, everyday value, and Santander remains the only bank to offer both in-credit interest and cashback on household bills.”