Santander is poised to adjust the interest rate on one of its well-regarded bank accounts in just a few days. The prominent high street bank will be reducing the interest rate for its current account holders from April 28.

Clients with the Santander Edge Up package bank account, which incurs a monthly charge of £5, have been benefiting from a 3 per cent interest rate. However, the interest for this account is set to decrease from 3% to 2.5% for in-credit balances below £25,000, reports The Express.

As a result, if your balance remains consistently at £1,000, you can expect your annual interest earnings to fall by £5, going from £30 to £25. A Santander spokesperson told The Sun: "We regularly review rates in light of changing market conditions and offer a range of competitive current and savings accounts."

They added: "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."

This news follows closely on the heels of an announcement that potential homebuyers or those looking to remortgage could now access larger loans from Santander UK. The bank has taken the lead as one of the first major lenders to cut residential affordability rates, heeding the FCA's call earlier this month for financial institutions to refine affordability calculations as interest rates decline.