Rewards and interest rates on Lloyds', Halifax's and Bank of Scotland's flagship current accounts could be under threat, after their parent company Lloyds Banking Group said it will conduct a review as a result of "changing market conditions".

The move, which came less than 24 hours after Santander halved the headline interest rate on its popular 123 account and follows the recent Bank of England base rate cut, will fuel speculation that other banks could follow suit and cut their rates and rewards as well.

Currently the Club Lloyds account pays a generous 4% interest on balances of between £4,000 and £5,000, making it one of the highest-paying current accounts on the market, while the popular Halifax Reward Current Account offers a £100 switching incentive and pays a £5 monthly reward as long as you pay in £750 each month, remain in credit and pay out at least two direct debits.

Bank of Scotland's current account pays 3% interest via its 'Vantage' add-on.

See our Best Bank Accounts guide for full info on all the top pick accounts.

Martin Lewis
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'Changing market conditions'

In a statement issued today, a spokesperson for Lloyds Banking Group said: "Given changing market conditions, including the market expectation that interest rates will be lower for longer, we will be reviewing our current accounts in due course. 

"Any customers affected will be notified of changes in advance so they can take appropriate action if needed."

What are other banks doing?

We're now checking with all the major banks to see what plans, if any, they have to review their rates and rewards. So far this is what we've been told – we'll update this story as we hear more.

Will banks slash current account interest rates & rewards?
Provider Planned changes to rates and rewards
Bank of Scotland Current accounts under review
Co-op Bank No changes planned
First Direct No changes planned
Halifax Current accounts under review
Lloyds Current accounts under review
M&S Bank No changes planned
Nationwide No changes planned – we're waiting for confirmation that perks such as free travel insurance won't change
NatWest No changes planned
Royal Bank of Scotland No changes planned
Santander Will halve interest paid on its 123 account to 1.5% from 1 Nov
Tesco Bank No changes planned
TSB No changes planned
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