- From 7 July 2020, Santander will reduce the in-credit interest rate on its 1I2I3 Student Account and change the way the in-credit interest is tiered on its 1I2I3 Mini Account.
- The 1I2I3 Mini Account will be tiered so customers earn 3% once the balance is £1,500 up to £2,000, 2% once the balance is £1,000 and 1% if the balance is under £1,000.
- Both accounts will now start paying interest for balances below £100 and customers will continue to benefit from existing account features, such as access to 1I2I3 World Offers and the free 4-year 16-25 Railcard on the 1I2I3 Student Account.
Following the Bank of England Base Rate reductions in March, from 7 July 2020 Santander will be reducing the in-credit interest rate for its 1I2I3 Student Account and changing the way the in-credit interest is tiered on its 1I2I3 Mini Account. Both accounts will also start paying interest on balances below £100.
On the 1I2I3 Mini Account customers will earn 3% once the balance is £1,500 up to £2,000, 2% once the balance is £1,000 and 1% if the balance is under £1,000. The relevant Interest rate will continue to be paid on the entire balance of the account. The 1I2I3 Student Account interest rate will decrease to 1% on balances up to £2,000.
Both accounts previously offered a tiered rate of 3% on the entire balance from £300 to £2,000, 2% from £200 and 1% from £100 (0% below £100).
Hetal Parmar, Head of Banking, Santander UK, said: “These changes mean that we can continue to give our customers ongoing value in a sustainable way, while ensuring the accounts remain competitive. 1l2l3 Mini Account customers will still earn up to 3% interest and our 1I2I3 Student Account customers can continue to use their free 4-year railcard and interest free overdraft.”
Santander will be writing to all 1I2I3 Mini and 1I2I3 Student Account customers from April 2020 to explain the changes, and details will also be included in monthly statements and on the Santander website.
Customers will continue to have access to preferential 1I2I3 Worlds offers and 1I2I3 Student Account customers will continue to benefit from the free 4-year 16-25 Railcard.
– Ends –
The information contained in our press releases is intended solely for journalists and should not be used by consumers to make financial decisions.
Notes to Editors
The changes being made to the 1|2|3 Mini Account also apply to the 1|2|3 Mini Account in Trust.
The changes being made to the 1|2|3 Student Account also apply to the 1|2|3 Graduate Account (off-sale) and 1|2|3 Postgraduate Account (off-sale).
Santander UK is a financial services provider in the UK that offers a wide range of personal and commercial financial products and services. At 30 December 2019, the bank had around 23,500 employees and serves around 14 million active customers, via a nationwide branch network, telephone, mobile and online banking. Santander UK is subject to the full supervision of the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA) in the UK. Santander UK plc customers’ eligible deposits are protected by the Financial Services Compensation Scheme (FSCS) in the UK.
Banco Santander (SAN SM, STD US, BNC LN) is a leading retail and commercial bank, founded in 1857 and headquartered in Spain. It has a meaningful presence in 10 core markets in Europe and the Americas, and is one of the largest banks in the world by market capitalization. Its purpose is to help people and businesses prosper in a simple, personal and fair way. Santander is building a more responsible bank and has made a number of commitments to support this objective, including raising over €120 billion in green financing between 2019 and 2025, as well as financially empowering more than 10 million people over the same period. At the end of 2019, Banco Santander had EUR 1.05 trillion in total funds, 145 million customers, of which 21.6 million are loyal and 37 million are digital (52% of active customers), 12,000 branches and 200,000 employees. Banco Santander made underlying profit of EUR 8,252 million in 2019, an increase of 2% compared to the previous year.