Santander is set to make a major change to a popular bank account within DAYS. The high street bank is slashing the interest rate offered to current account holders from April 28.

Customers with a Santander Edge Up package bank account - priced at £5 per month - enjoy a 3% interest return. However, the interest rate offered on the account will fall from 3% to 2.5% on balances up to £25,000 later on this month.

This change means that if you consistently maintain a balance of £1,000 in the account, the annual interest earned will decrease by £5 - from £30 to £25.

A spokesperson for the bank told The Sun: "We regularly review rates in light of changing market conditions and offer a range of competitive current and savings accounts.

"As such from April 28, 2025 we will be reducing the in-credit interest on the Santander Edge Up to 2.5% AER (variable) on balances up to £25,000." It comes days after it emerged customers looking to purchase or remortgage a home can borrow more from Santander UK. It becomes the first major lender to reduce residential affordability rates in response to the FCA’s call earlier this month for lenders to design their affordability rates to best meet their customers’ needs, in a market where interest rates are declining.