Santander has announced a substantial cut to the interest rate paid on one of its flagship current accounts, delivering a blow to savers seeking returns on their everyday banking.
Key Details of the Rate Reduction
The bank confirmed that the credit interest rate on its Santander Edge Up current account is being reduced. It will fall from 2.50% AER to 2.10% AER on customer balances of up to £25,000. The lower rate officially takes effect from Wednesday, 17th December 2025.
This change means that the gross rate—the interest paid before tax is deducted—will drop from 2.47% to 2.08%. For account holders, this represents a noticeable decrease in the potential earnings on money held in this account.
A Pattern of Changing Customer Rewards
This interest rate cut is not an isolated move. It follows a series of recent adjustments Santander has made to its Edge account range, which have gradually reduced the benefits available to customers.
Earlier in the year, the bank removed cashback rewards for specific types of debit card spending, such as purchases at supermarkets and on travel. This latest reduction in credit interest continues the trend of scaling back the account's premium features.
Broader Context and Bank Strategy
Santander has cited the recent decreases in the Bank of England base rate as a key factor behind its decision. Throughout 2025, the bank has been progressively lowering rates across its suite of savings and current account products in response to the wider monetary policy environment.
Concurrently, Santander is making other changes to its account lineup. The bank plans to convert its 1|2|3 Lite Current Account into the Everyday Current Account. This alternative account carries no monthly fee but, in exchange, offers neither credit interest nor cashback rewards.
The adjustments extend beyond current accounts. Santander has also implemented cuts to interest rates on several of its ISA and savings products. Earlier in the year, many easy-access savings accounts saw their rates reduced by between 0.10% and 0.20%.
For consumers, these successive changes underscore the importance of regularly reviewing banking arrangements to ensure they still offer competitive value, especially in a climate of shifting interest rates.
