12 September 2023 , 16:29
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Martin Lewis warned people that a major high street bank is set to change interests rates for one of its savings accounts.
The Money Saving Expert (MSE) founder said that Santander will drop the interests rates for its easy access savings accounts. They are due to fall from 5.2% to 2.5% at midnight.
In a Tweet posted on Tuesday (September 12), he wrote: "URGENT! I've just heard Santander will drop the rate of its top easy access savings account from 5.2% to 2.5% at midnight.
"Yet open it now, even if you don't put money in, and you 'should' get the facility for 12 months." Martin said on his MSE site that the top paying 'best buy easy-access savings account' currently comes from Santander.
He explained that you could receive the higher rate by simply opening an account before midnight with the bank for as low as £1 minimum deposit. This way you would still benefit from the 5.2% interest rate before it cuts down to 2.5%.
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The further good news is that customers would not even have to put any money into the account at all to to keep the 5.2% rate. "So you want to open the facility today," he advised.
A Santander Easy Access Saver account can be opened by UK residents aged 16 and over. However, he pointed out the this rate will only last for 12 months - after which the account will 'mature' and the money moved into a lower rate holding.
He said: "In other words, they move your money to their far worse 'Everyday Saver' that pays a pants 1%. So you'll want to ditch and switch at that point."
Elsewhere, Martin recently warned for people to put away their savings now. He told his followers on X (formerly Twitter) that they can now "lock away" their money with "total safety" as National Savings & Investments (NS&I) has launched a 6.2% one-year best buy fix savings bond which "beats every other fix on the market - of any length".