From 1,2,3 to 3,2,1.5?

October 12th, 2016

The news that Santander had slashed in the interest rate on its market-leading current account from 3 to 1.5 did not surprise experts, who reckoned the deal that has attracted 3 million customers was costing Santander as much as £1 billion a year.

The 123 account pays the high rate on balances of between £3,000 and £20,000 and had attracted savers unable to get anywhere near the 3 interest rate elsewhere. Other banks with similar products have also said they are reviewing their rates following the cut in the Bank of England base rate in August.