Santander has confirmed a significant reduction to the interest rate on one of its popular packaged current accounts, a change that comes into effect today, Wednesday 17 December 2025.
What is Changing with the Santander Edge Up Account?
The bank is lowering the credit interest paid on its Edge Up packaged current account. Previously, customers paying the £5 monthly fee earned 2.5% interest on balances held in the account. From today, that rate has been cut to 2.1% on balances up to £25,000.
This adjustment has a direct financial impact. For example, a customer who consistently maintains a £10,000 balance will now earn £210 in annual interest, down from the previous £250. This represents a £40 reduction in yearly returns for that balance level.
A Santander spokesperson said, "We regularly review rates in light of changing market conditions and offer a range of competitive current and savings accounts."
How Does Santander Compare to Other Banks Now?
Despite this cut, Santander's Edge Up account continues to offer one of the highest interest rates available on a packaged current account in the UK market. However, competitors provide different propositions.
Lloyds Bank offers its Club Lloyds Silver account holders 3% interest, but this only applies on balances up to £5,000. For a monthly fee of £11.50, this account also bundles in benefits like travel insurance.
Virgin Money provides its Club M customers with 1% cashback on balances up to £1,000 and 2% on a linked saver balance up to £25,000.
Switching Offers and Account Perks Remain
Alongside the rate change, Santander is actively promoting a £200 cash bonus to attract new customers. The offer requires individuals to switch their main current account to a Santander Edge account using the Current Account Switch Service (CASS).
The bonus, flagged by Martin Lewis's MoneySavingExpert team, is paid within 30 days of meeting the criteria, though it will not arrive in time for Christmas. The Edge account itself, which costs £3 per month, offers 1% cashback on key household bills like energy, council tax, and broadband, capped at £10 per month.
It also provides access to an Edge Saver paying 6% on up to £4,000 for the first year, and the debit card has no foreign exchange fee for spending abroad.
Santander serves 14 million active customers in the UK, with seven million banking exclusively online. Both new and existing customers may be eligible for the switching incentive, subject to the specific terms and conditions.
