‌Santander cuts rate on popular easy-access savings account again – should you switch?

The rate cut applies to Santander's 'Easy Access Saver Limited Edition (Issue 3)', which is no longer open to newbies.

When it launched in September 2023, this account was unbeatable among standard easy-access savers, so we covered it extensively in our weekly email and on our website. Following "significant demand", Santander stopped accepting new applications for the account on 13 September 2023 – barely a week after launching it.

While this account has a specific term, the rate is variable

This account works in a slightly unusual way – it initially had a 12-month term, but the rate WASN'T fixed for this period. So it was always possible for Santander to change it provided it gave savers the required two months' notice under its terms, which it has done.

Instead, what happens at the end of the term – which has since been extended by 10 months – is that the account 'matures' and your money is transferred to one of Santander's other easy-access accounts with a much lower interest rate (currently 1.2%).

You can easily beat Santander's new rate by switching elsewhere 

The flip side of Santander's rate being variable is that you're not locked in and don't have to stick with it – you can ditch and switch.

Remember: as with all easy-access accounts, the rates below are AER variable; they can and do change, so you need to monitor them.

• Unusually, the top-paying easy-access account right now is a cash ISA at 5.1%. Cash ISAs are just savings accounts you never pay tax on, and everyone in the UK aged 18 or over can deposit up to £20,000 in them in this tax year (which ends on 5 April 2025).
  

  Normally, cash ISAs tend to pay a bit less than standard savings, but right now it's the opposite, with app-only provider Trading 212 paying the top rate of 5.1% – see our Cash ISAs guide for the full details.

• For standard easy-access with unlimited withdrawals, the top payer is Oxbury at 4.87%. However, you'll need a hefty £25,000+ to open it. If you've less or you prefer a well-known name, Santander-owned Cahoot's Simple Saver pays a slightly lower 4.85% and the account can be opened with just £1.

Other ways to boost your savings

Depending on your situation, you can get even higher rates with other account types. For example:

• If you tend to save little and often, you can get up to 8% with a regular saver. To max your returns, you could also drip-feed money from an easy-access saver into one or more of these accounts.

• If you have a Santander Edge current account, you can get 6% on up to £4,000 with its linked saver.

For lots more options, see our Top savings accounts guide.