Santander has cut the interest rate on a popular current account today, with many of its 14 million customers set to lose out. The banking giant reduced the interest rate on its Edge Up packaged account on Wednesday, December 17, from 2.5% to 2.1% for accounts with a balance of £25,000 or less. 

The Edge Up account comes with a monthly fee of £5 and, until today, boasted a 2.5% interest return on customers’ cash. This meant that accounts with a consistent balance of £10,000 would earn £250 every year. The new, lower interest rate means this will fall by £40 to £210.

A spokesperson for Santander said: “We regularly review rates in light of changing market conditions and offer a range of competitive current and savings accounts.”

The Edge Up account will still offer several additional benefits, including no-fee transactions abroad, 1% cashback on select categories, money management via the Santander app, and a selection of freebies and offers.

In November, Santander launched a deal offering customers £200 to switch to an Edge Up current account. Edge Up accounts are marketed on their “valuable everyday benefits”.

The bank’s alternative current account, the Everyday Current Account, does not pay interest on customers’ cash balances.

Savvy UK banking customers can pick from a range of interest rates on current accounts at other banks.

Lloyds offers Club Lloyds Silver account holders 3% interest on balances up to £5,000, and Virgin Money Club M customers can earn 1% interest on balances up to £1,000.