‌Santander cuts rate on popular 5.2% easy-access savings account – should you switch?

The rate cut, which took effect on Monday 20 May, 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 12-month term, the rate was always variable

This account works in a slightly unusual way – it has a 12-month term, but the rate ISN'T fixed for this period (and never was). So it's always been possible for Santander to change it provided it gave savers the required two months' notice under its terms, which it has done (it started sending notifications to savers in March). 

Instead, what happens at the end of the 12 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%).

Nevertheless, the rate cut seems to be catching a number of savers by surprise, with some saying they expected the 5.2% rate to last for a year:

When it first launched, we had hoped the higher rate would stick around for the full year, but warned: "as all easy-access accounts are AER variable, rates can and do change, so you need to monitor them".

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 5.2% – with some caveats. 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 5.2%. However, it doesn't let you transfer in at the moment – see our Cash ISAs guide for the full details.

• For standard easy-access accounts with unlimited withdrawals, Chase's linked saver is top with 5.1%. This includes a fixed bonus of 1% until 16 January 2025. To get it, you first need to open Chase's current account – a top pick in its own right. See our full Chase Bank review for more info.

• Prefer a big name? Yorkshire Building Society's easy-access saver currently pays 4.8%. You can open it with £1 and it allows unlimited withdrawals.

Other ways to boost your savings

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

• If you can afford to lock away your money, you can get up to 5.22% with a six-month fix or up to 5.21% with a one-year fix.

• 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 7% on up to £4,000 with its linked saver.

For more options, including possible £100 cashback and 5% interest if you're saving £10,000-plus, see our Top savings accounts guide.