08 May 2024 , 09:50
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Santander customers have been issued an urgent reminder about the rate on its popular easy-access savings account being cut toward the end of this month.
The interest paid on the Easy Access Saver Limited Edition (Issue 3) is being slashed from 5.2% to 4.2% from May 20. This account was “unbeatable” at the time of its launch in September 2023, according to MoneySavingExpert.com (MSE) - and Santander stopped accepting new applications for it after just one week.
But once the rate is lowered to 4.2%, MSE said it will “easily” be possible for many to beat this elsewhere. The top-paying easy-access account right now is a cash ISA from Plum at 5.17%. Oxbury currently tops the standard easy-access table with 5.02% – but you'll need at least £20,000 to open it. If you have less to save, Kent Reliance pays 4.96% if you have at least £1,000 to save, and Cynergy Bank pays 4.95% with a minimum deposit of just £1.
You can also get up to 5.25% if you're able to lock away your money with a six-month fix, or up to 5.18% with a one-year fix. MSE says you should stick with Santander until May 20 in order to “maximise” your savings and its top rate before it disappears. Martin Lewis said: "When I first heard this was happening I thought, 'how annoying!' I'd hoped this account would keep the stellar rate for the full term, though there was never a guarantee – and then it decided to slash it.
"Having said that, for most of the past few months it's been higher than any other easy-access account rate – and the big advantage of choosing variable easy-access accounts like this is that, if they do let you down and ditch the very high rate, you can ditch them just as quickly and switch elsewhere. And even though the new rate is far from awful, it's beatable, so why not move your money elsewhere."
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