Martin Lewis's word of warning to Santander customers ahead of big change next week

Martin Lewis has issued a word of advice to certain Santander customers ahead of a major change that is set to come into force next week.

From Monday May 20, the rate of interest on Santander's easy access account will be slashed down from 5.2 percent to a much lower 4.2 percent in what could be a major blow for customers.

However, you can get ahead and switch your savings over to an account with a higher interest rate - but you only have a few days before the Santander change comes into force, Birmingham Live reports.

Martin 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.”

He continued, highlighting the benefits of such accounts despite the cut: “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.”

At the moment there are 77 easy access accounts that pay more than Santander's 4.2 percent, according to Moneyfactscompare.co.uk. Rachel Springall from the comparison site said: “Savers might not want the hassle of switching, but it’s really quick and easy to do online, plus they can find some of the leading easy access accounts are paying around 5%...

"At the time of its launch, Santander’s offer caused a stir, but it’s now time for savers to check and see if the account will be the right choice for them. Savers will need to check the terms and conditions of other accounts carefully before they move their cash.”

Rachel added: “Paragon Bank pays a competitive 5.05%, but it only permits two withdrawals within 12 months, so careful planning is a must.” She added: “Savers need to keep a close eye on the top rate tables and switch quicky to not be left disappointed.”

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