Martin Lewis warns customers to 'ditch' major high street bank

Mr Lewis, the BBC Sounds and star, has spoken out over a "ditch and switch" warning for customers of huge high street bank.

Martin Lewis has issued a "ditch and switch" warning for Santander customers. Mr Lewis, the BBC Sounds and star, has spoken out over a "ditch and switch" warning for customers of huge high street bank.

Santander has cut the rate on its easy-access savings account by 1.1%. The account paid 5.2% interest when it first launched, but was cut to 4.20% in May and has now been reduced to 4%. This means customers will get 4% interest on balances between £1 and £250,000.

MSE said: "This account works in a slightly unusual way – it initially had a 12-month term, but the rate WASN'T fixed for this period. 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.

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"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%)."

It applies to customers who have a Santander's Easy Access Saver Limited Edition (Issue 3). They said: "You can easily beat this new rate by switching elsewhere – which you're allowed to do without penalty. They explained: "This account works in a slightly unusual way – it initially had a 12-month term, but the rate wasn't fixed for this period. 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."

"You can ditch and switch," they added. The top-paying easy-access account right now is a cash ISA at 5.1%. 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 (which ends on 5 April 2025).