Santander increases interest rates on several savings accounts | Personal finance | Finance
The bank has confirmed that it is increasing the deposit interest rate on its 123, Select and Private current account to 0.50% AER. This latest intervention from Santander will be applicable on account balances up to £20,000. Customers can expect this new interest rate to apply automatically as of March 28, 2022.
The interest rate on current Santander 123, Select and Private accounts is variable.
This means that Santander customers will be able to get up to £100 in interest on their account each year.
Santander says there will be no further changes to the operation of the affected accounts.
Additionally, the monthly fee of £4 will remain the same for all customers accessing the bank’s current accounts.
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In addition, Santander customers will continue to be able to access preferential rates on the bank’s products through 1I2I3 World5, which offers special offers.
Finally, customers will still be able to earn additional cash back on their debit card spending through retailer offers.
As a free service offered by Santander, Retailer Offers allow customers to earn up to 15% cash back at many high street retailers.
Anyone interested in this offer can activate retailer offers via online or mobile banking,
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Customers choose their favorite offers and get cashback when using Santander debit or credit cards.
This will all be on top of the cashback customers earn on select household bills paid by direct debit.
To date, the bank is the only one in the UK to offer customers both cash back on household bills and interest on credit balances through current account products.
While useful for savers, any reimbursement on household utilities is capped at £5 across several bill categories.
For example, a 1% cashback is offered to customers on council taxes, mobile and residential telephone bills.
This same offer is offered on broadband and pay TV packages and monthly mortgage payments in Santander.
A 2% discount is available on gas and electricity bills, which is vital as energy costs are set to soar next month.
Home and life insurance premiums purchased through Santander are also applicable for this 2% refund offer.
The only utility that customers can get three percent cash back on is the household water bill.
Last year the bank introduced a £130 cashback offer for customers who switch to a Santander current account.
At the time, Hetal Parmar, Head of Banking Services at Santander UK, explained: “Santander is the only bank to offer its customers ongoing value, every month, by paying off household bills through our 1I2I3 current accounts.
“We are delighted to also offer a £130 discount for customers who transfer their current account to Santander.”