Martin Lewis' MSE urges Santander customers to 'ditch' their bank account

The BBC Sounds and ITV star's Money Saving Expert team has warned Santander customers with an Easy Access Saver Limited Edition this week.

Martin Lewis has urged Santander customers to consider DITCHING their bank accounts. The BBC Sounds and ITV star's Money Saving Expert team has warned Santander customers with an Easy Access Saver Limited Edition this week.

It comes as the bank has cut its rate from 5.2% to 4%. MSE said: “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 specific term, the rate is variable. This account works in a slightly unusual way – it initially had a 12-month term, but the rate WASN'T fixed for this period.

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"So it was always possible for Santander to change it provided it gave savers the required two months' notice under its terms, which it has done. Instead, what happens at the end of the term – which has since been extended by 10 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%).”

Easy access let you make withdrawals at will (though some do limit the total number you can make a year). They tend to pay lower rates than many other types of account, but are a good place to keep your money if you're going to need it soon (or frequently)

Make sure you keep an eye out for introductory 'bonus' rates. These are temporary interest boosts to attract new customers. MSE says: "They're actually a good thing for many, as they effectively act as a minimum rate guarantee during the introductory period, promising you at least some interest.

"But it is vital to remember the end date for the bonus and switch as soon as it ends, so you don't languish on a rubbish rate."