Santander cuts 5.2% easy-access rate: should you move your money?

Customers will earn 4.2% from 20 May

Santander’s slashing the rate of its easy-access account on 20 May. Customers with The Easy Access Saver Limited Edition, which launched in September 2023, will see their rate drop from 5.2% to 4.2% less than a year after signing up for it.

We’ve had a number of questions about what to do next on our Facebook community which I’ll be answering below. 

What’s going on with The Easy Access Saver Limited Edition account?

Earlier this year, Santander announced it would be cutting the 5.25% interest rate. Now, the rate was always variable – so could change at any time – but lots of people are surprised it’s changed so soon.

The account was marketed as paying a 5.2% variable rate for 12 months, so many were expecting to benefit for the year, not nine months after the account was launched. 

The account was closed to new customers shortly after it launched, but existing ones will earn 4.2% from 20 May.

Santander’s blamed the rate cut on ‘current market conditions’ and says it’s been contacting customers since March to explain what’s happening.

When should I move my money?

If you’re thinking of moving your money and it can wait, it’s best to hold on until 20 May. That way you can earn the top rate of 5.2% until it drops. 

But if you do move it earlier, that’s not a problem. You’ll still get any interest due paid into the account. Just remember to drop back in when that happens so you can transfer the money across too.

What about if I’m paid annual interest?

If you’re waiting for your interest to be paid at the end of the first 12 months, you can still move your money. Santander calculates the interest daily so if you close your account you’ll be paid up until it’s closed.

Where can I move my money?

Santander’s 5.2% rate was top of the easy-access tables and, unlike other providers, you weren’t limited by small balances. You could earn 5.2% on balances from £1 up to £250,000 (although only £85,000 of this would be protected by the Financial Services Compensation Scheme) for 12 months. Now it’s being cut to 4.2% you will find there are better options for your money.

If you’re after an easy-access account, Cahoot’s Sunny Day Saver pays 5.2% for 12 months. However, it’s only offered on balances up to £3,000, so you’ll only earn a maximum of £156 in that year.

If you have £3,000 in Santander’s Easy Access Saver Limited Edition account, you’ll earn £136 in a year once the rate is cut to 4.2%, so moving banks for an extra £20 might not be worth it for you.

No other easy-access accounts beat Santander’s old rate, but there are plenty offering more than its new rate of 4.2%.

If you’ve got a large deposit, you can earn 5% or more with Oxbury Bank, Monument Bank or Close Brothers’ easy-access accounts – and you’d earn significantly more on your balance than if you stuck with Santander. 

For example, savings of £20,000 with Oxbury Bank earning 5.02% would earn just over £1,000 interest compared to the £840 you’d get from Santander after it cuts its rate. Just be mindful of your personal savings allowance. You can find out more in our savings best buy article, which we regularly update. 

The top notice account pays up to 5.25% and you can get 5.22% with fixed accounts, if you can tie up your money. 

If you prefer saving little and often, regular savers offer rates up to 7%

And don’t forget Cash ISAs. You can pay up to £20,000 into a new ISA every tax year and what you earn is tax free. Chip’s easy-access ISA pays 5.1% and if you don’t need to access your money more than three times a year, Plum offers 5.17% for 12 months. 


Santander’s 5.2% rate was never going to last forever and customers (who got in before the account was withdrawn) knew they’d likely have to move their money after a year. However, it’s still a shame the rate’s been cut sooner.

There are plenty of accounts that offer better rates for all balances and the more you have saved, the bigger the difference switching will make.

5 thoughts on “Santander cuts 5.2% easy-access rate: should you move your money?

  1. PLUM’s ISA rate is 4.29% monthly with a bonus taking it to 5.17% after a year. So dependent on how long you want to save for this account may not be for you. It wasn’t for me as I’m saving for a house and a year is too long.

    I moved some money to cahoot so got same rate as Santander. I was annoyed at the rate changing but also the inconsistent communication via the app then email

  2. I’ll be moving money from Santander to Trading 212 Cash ISA which will be paying 5.2% and %1 cashback on ISA deposits .

    1. Forgot to mention it will be flexible ISA . What else can you ask?

    2. As far as I know the Trading 212 Cash ISA hasn’t launched yet. I did receive a notification that it was “coming in May” but haven’t heard anything more. Trading 212 has said the interest rate will be 5.2% but the 1% cashback is news to me. They so (did?) have a 1% cashback offer on ISAs but trhat’s for their Stocks & Shares ISA.

      1. Note that with the Trading 212 Cash ISA you are NOT protected by the FSCS up to a limit of £85,000. See their website and product FAQs for more.


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