Santander Cuts Edge Up Interest Rate – What It Means for Account Holders

Santander customers are waking up to a key change that takes effect from today, December 17. If you have a Santander Edge Up account, your interest earnings are about to take a hit. The popular current account’s interest rate is dropping from 2.5% to 2.1%, slashing returns on balances of up to £25,000.

While the bank still offers one of the most competitive current account rates in the UK, this cut means customers will now earn £40 less a year on a balance of £10,000. Let’s break down what’s changing, how it compares to rival banks, and what else Santander is offering to keep customers on board.

Drop

The Edge Up account, which charges a £5 monthly fee, currently pays 2.5% interest on balances up to £25,000. From today, this drops to 2.1%—reducing potential returns for savers using their current account as a home for their funds.

Here’s how the drop affects annual earnings:

Balance Held	Old Rate (2.5%)	New Rate (2.1%)	Annual Loss
£5,000	£125	£105	£20
£10,000	£250	£210	£40
£25,000	£625	£525	£100

While a 0.4% cut might not sound huge, it adds up—especially for those holding large balances in the account.

Compare

Santander still offers one of the highest interest rates available on a packaged current account, especially for those with balances over £5,000. However, the competition is catching up, particularly if you’re more focused on added perks like insurance.

Here’s how some popular alternatives stack up:

Bank & Account	Monthly Fee	Interest Rate	Perks Included
Santander Edge Up	£5	2.1% up to £25k	Cashback, no FX fee, budgeting
Lloyds Club Silver	£11.50	3% up to £5k	Travel insurance, AA breakdown
Virgin Money Club M	£12.50	1% (current), 2% on savings	Cashback, linked saver interest

So while Santander still leads on interest rates for higher balances, those wanting extra perks like insurance might find better value elsewhere—like Lloyds Club Silver.

Cashback

Santander Edge Up also offers 1% cashback on select categories, including household bills and travel. This is capped, but for many, it adds a little extra back into their account each month.

In addition, the Edge account (not Edge Up)—which has a lower £3 monthly fee—also gives 1% cashback on council tax, utilities, broadband, and water bills, up to £10/month. It also comes with access to the Edge Saver, which pays 6% interest on up to £4,000 for the first year.

Bonus

To sweeten the deal and attract new customers, Santander is currently offering a £200 switching bonus. If you move your current account from another bank to a Santander Edge or Edge Up account using the Current Account Switch Service, you could pocket this free cash.

Key points for the bonus:

• Must switch via the Current Account Switch Service
• You’ll need to meet the eligibility criteria
• The £200 will be paid within 30 days of eligibility being confirmed
• It won’t arrive in time for Christmas, but still a decent start to the New Year

The promotion was recently highlighted by Martin Lewis’ MoneySavingExpert.com team as one of the top current account deals available.

Online

With 7 million Santander customers now banking exclusively online, this change—and the accompanying perks—highlight how digital features now drive many people’s banking choices. Santander continues to push tools like in-app budgeting, no foreign exchange fees on debit card spend abroad, and exclusive offers for account holders.

So, while today’s 0.4% interest cut may be disappointing, Santander is still providing decent overall value, especially for higher-balance customers or those looking to switch for a quick cash bonus.

If you’re already an Edge Up account holder, it’s a good time to review whether you’re getting your money’s worth—and if not, consider the regular Edge account or a competitor that offers perks that better fit your lifestyle.

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