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Santander to cut rate on popular 5.2% easy-access saver – should you switch?

Santander is cutting the rate on its popular easy-access savings account from 5.2% to 4.2% on 20 May 2024. The current rate of 5.2% is hard to beat, so it's probably not worth switching just yet – but you may want to keep an eye out for alternatives, especially once the rate drops in May.

The rate cut applies to Santander's 'Easy Access Saver Limited Edition (Issue 3)', which is no longer open to newbies. If you've got this account, Santander will contact you from today (Friday 8 March) to give you the required two months' notice of the change.

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.

Standard easy-access savings currently pay 5.11% – so it's probably not worth switching just yet

The current top payer for easy-access accounts with unlimited withdrawals is Monument Bank at 5.11% – but you'll need at least £25,000 to open it. If you've less to save, the next best is Cynergy Bank at 5.1% (minimum £1), also with unlimited withdrawals. 

As a result, you may want to stick with the Santander saver for the time being. However, there are a few ways to beat its 5.2% rate, for example:

  • If you can afford to lock away your money for a year, you can get up to 5.28% with a one-year fix.

  • If you tend to save little and often, you can get up to 7% with a regular saver. To max your returns, you could also drip-feed money from the Santander saver into one or more of these accounts.
  • If you have a Santander Edge current account, you can get 7% on up to £4,000 with its linked saver.

For more options, see our Top savings accounts guide.

Remember to check how your Santander saver rate compares in May

As with any variable rate, it's worth regularly checking it against the top-payers to make sure you're maximising the interest on every penny you've saved.

Without a crystal ball, we can't know how the Santander saver will stack up against other easy-access accounts in May – but with the Bank of England's base rate being held again last month, it's very unlikely rates will improve on the whole in the short-term, and they could fall.

So, if you don't need easy access to your cash, it's worth considering whether to lock in with a top fix now. If you can't or don't want to fix, the best thing to do is make a note of the 20 May 2024 date and have a look at our Top savings accounts guide to see what's available at the time.

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