- From 5 May 2020, Santander will reduce interest rate on its 1I2I3, Select and Private Current Accounts, to 1%1 per annum on balances up to £20,000
- Cashback2 paid on the 1I2I3 Current Account and the 1I2I3 Lite Current Account will be capped at £15 per month - £5 on each cashback category
- Customers will continue to be able to earn up to £379 per annum: £199 per annum in interest, and £180 per annum in cashback
From 5 May 2020, Santander will be reducing the in-credit interest rate for its 1I2I3, Select and Private Current Accounts, from 1.50% to 1.00% on balances up to £20,000. This will mean customers can continue to earn up to c. £1993 in interest per year.
In addition, Santander will, from 5 May 2020, be capping household bill cashback at £5 in each of the three cashback categories on its 1I2I3 Current Account, 1I2I3 Lite, Select and Private Current Accounts – meaning customers can benefit from up to £15 cashback per month or £180 per year. Nine in ten customers will be unaffected by the cap.
There will be no change to the account fees, which will remain at £5 per month for 1I2I3 Current Account and £1 per month for 1I2I3 Lite Current Account. The range of household bills on which cashback can be earned will also remain the same.
The changes are being made as a result of a number of factors including a persistently low interest rate environment and the financial impact of regulatory changes in the banking industry.
Susan Allen, Head of Retail Banking at Santander, said: “While we have had to make some difficult decisions in the current environment, our current account range remains very competitive. Our flagship 1I2I3 Current Account continues to offer great value, with customers able to earn up to £379 per year in interest and cashback for an account fee equivalent to just £60 a year, while 1I2I3 Lite customers can earn up to £180 a year in cashback for a fee of just £12 a year."
“Our 1I2I3 accounts provide a range of benefits that we know our customers value and our goal is to ensure these accounts remain sustainable for the future.”
Santander will be writing to all customers from January 2020 to explain the changes. Details will also be included in monthly statements and on Santander’s website. Customers can see how much cashback and interest they currently earn on their Current Account by logging in to online or mobile banking or via their monthly account statement. The 1I2I3 calculator on Santander.co.uk will be updated on 14 January for customers to see what they will earn under the new pricing.
Santander will provide information on alternative account options for the very small proportion of customers – less than 2% of the total – for whom the changes mean the returns on their account will not meet the monthly fee.
Customers will continue to have access to preferential 1|2|3 World offers and earn additional cashback through Retailer Offers.
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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
1) 1.00% AER/1.00% Gross (variable)
2)
| Cashback amount | Household bill |
|---|---|
| 1% | Water bills Council tax bills Santander redsidential mortgage payments |
| 2% | Gas and electricity bills Santander Home Insurance premiums Santander Life Protection premiums |
| 3% | Mobile and home phone bills, broadband and paid for TV packages |
3) Total annual interest on £20,000 is £199.09
Santander UK is a financial services provider in the UK that offers a wide range of personal and commercial financial products and services. It has brought real competition to the UK, through its innovative products for retail customers and relationship banking model for UK SMEs. At 30 June 2019, the bank has around 24,000 employees. It serves around 15 million active customers, via a nationwide branch network, telephone, mobile and online banking; and 62 regional Corporate Business Centres. 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 the largest bank in the euro zone by market capitalization. At the end of June 2019, Banco Santander had EUR 1.03 trillion in customer funds (deposits and mutual funds), 142 million customers, 13,000 branches and 200,000 employees. Banco Santander made underlying profit of EUR 4,045 million in the first half of 2019, an increase of 2% in constant euros compared to the same period last year.
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