Martin Lewis warns Santander customers with under £20,000 in account to 'move money'

Martin Lewis and his Money Saving Expert have explained what Santander customers with less than £20k in their bank account need to do as the rate on a popular account is dramatically cut. BBC Sounds podcast presenter Mr Lewis spoke out on Twitter/X this week, as well as the MSE website.

Mr Lewis' warning comes as Santander is cutting the rate on its popular easy-access savings account from 5.2% to 4.2% on Monday 20 May. Many can easily beat the new 4.2% rate by switching elsewhere – which you're allowed to do without penalty.

When it launched in September 2023, this account was unbeatable among standard easy-access savers. ITV regular Mr Lewis said: "When I first heard this was happening I thought, 'how annoying!' I'd hoped this account would keep the stellar rate for the full term, though there was never a guarantee – and then it decided to slash it.

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"Having said that, for most of the past few months it's been higher than any other easy-access account rate – and the big advantage of choosing variable easy-access accounts like this is that, if they do let you down and ditch the very high rate, you can ditch them just as quickly and switch elsewhere.

"And even though the new rate is far from awful, it's beatable, so why not move your money elsewhere." Easy-access savings currently pay up to 5.17 per cent – so MSE has urged readers to time your switch carefully to max the interest.

The top-paying easy-access account right now is a cash ISA at 5.17 per cent. Cash ISAs are just savings accounts you never pay tax on, and everyone in the UK aged 18 or over can deposit up to £20,000 in them in this tax year, MSE has gone on to explain online.