Santander increases the interest rate on current accounts 1|2|3

Santander has announced that it will raise the deposit interest rate on a range of current accounts.

The banking giant has confirmed that the deposit interest rate on its 1|2|3, Select and Private current account will increase from 0.30% AER/gross to 0.50% AER/gross (floating) on ​​balances up to at £20,000.

The new interest rate will automatically apply to accounts from March 28, 2022.

This means that customers will be able to receive up to £100 in interest on their account each year, up from £60 currently.

He confirms that there are no further changes to the account and that the charge of £4 per month remains.

Customers can continue to earn cashback on certain domestic bills paid by direct debit, capped at £5 in each of the following categories:

1% discount:

Municipal tax accounts
Mobile and home phone bills, broadband and pay TV packages
Monthly mortgage payments in Santander

2% refund:

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% discount:

Water bills.

There are no changes to the Santander current account 1 | 2 | 3 Lite where customers earn cashback on household bills only for £2 per month, or on the daily account which is a standard checking account with no monthly fee.

For new customers switching to Santander’s 1|2|3 current account, they can earn £140 cashback, provided they switch through the Current Account Switching Service (CASS), deposit £1,000 into the account, set up two active direct debits, pay the £4 per month fee and connect to online or mobile banking.

Stephen V. Lee