Santander is cutting the interest rate on its 123 Current Account again, reducing it from 1% to 0.6% AER from 3 August. This is the second reduction to be announced in three months and means Santander will have knocked 0.9% off its 123 account interest rate since the start of May.
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The interest rate on Santander's popular 123 Current Account will be reduced to just 0.6% AER from tomorrow (Monday 3 August). The bank had already cut the rate from 1.5% to 1% AER in May, while introducing a £5 monthly cashback cap for each of its three tiers.
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The rate on the 123 current account will drop from 0.6% to 0.3% for new and existing customers from 12 April, while the monthly fee to hold the account will also fall from the same date for new and existing customers from £5/month to £4/month.
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Pros. 1.75% in-credit interest on balances up to £20,000. Cashback on household bills and at selected retailers. Cons. Cashback on household bills is capped at £5 per tier. £4 monthly fee to...
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Edge up: Santander's new current account offers up to £30 a month in cashback on selected monthly bills and essential spending as well as a 3.5% interest rate on balances up to £25k
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Santander has today announced that it is upping the in-credit interest rate on its popular 123 current account for the first time after a series of cuts over the years. Current account customers...
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See what interest you get on your Santander UK bank account; access information on both on-sale and off-sale accounts. Find out more at santander.co.uk.
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It offers 3.50% AER/3.45% Gross interest on current account balances of up to £25,000, allowing you to earn up to £71.77 every month. Further, there’s fee free debit card spending abroad, and card holders can withdraw money at any ATM worldwide without paying a fee.
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AER stands for Annual Equivalent Rate and shows what the interest rate would be if we paid interest and added it to your account each year. The gross rate is the interest rate we pay where no income tax has been taken off. Rates may change and we pay interest each month.
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We’ll pay this interest into your current account on the same day each month. This is usually on the date you opened or transferred your account. We won’t pay you any interest for any month where you don’t meet the eligibility requirements. Interest payments will be paid using the gross rate.
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