Santander will be making a huge change to one of its popular bank accounts this month. The high street banking giant has confirmed that it will be cutting the interest rate on its Santander Edge on April 28.

Currently, the Santander Edge Up account package - which costs £5 per month - gets a 3% interest rate on cash held in the account. On top of this, account holders can get 1% cashback on certain household bills, fee-free transactions abroad, and various discounts and freebies through Santander Boost.

Perks offered with Santander Boost include cashback when you shop online at a wide range of retailers, vouchers and coupons for discounts on a variety of products and services, personalised offers and free gifts and prize draws.

However, from the end of this month the 3% interest rate offered to customers will be cut to 2.5% for in-credit balances under £25,000. This means you will earn less on your money. For example, if you consistently have a balance of £1,000, your yearly interest earnings will drop by £5, reducing from £30 to £25.

On the move, 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. 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."