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