The Cantabrian bank will take its offer to market next midnight. English banks have begun an upward race to pay their clients’ accounts after pressure from the Government and the regulator.
Santander UK announced that as of next midnight it will stop offering its 5.2% deposit in savings accounts called Easy Access Limited Edition 3 as a result of the high demand it registered.
The British subsidiary of the Cantabrian bank was put on the market on September 4 – BBVA did the same in Italy – an offer that put it in the upper range of the remuneration of the demand accounts, with a 5.2% over 12 months for a maximum of £250,000 (291,000 euros). The deadline expired on September 17, although the bank warned at the time that it could be withdrawn if the product ran out, as it did.
The entity headed by Ana Botín, which has 19,400 employees and 14 million active customers in the United Kingdom, will charge between 2.5% and 3% on its other current accounts starting tomorrow. The product that offers the highest profit, is called Santander Edge Saver, comes to 7% for sweet months.
The British subsidiary of Santander It has already created a movement of this kind less than a year ago. In October 2022, it also launched a limited edition of a deposit, which also placed itself in a leading position in the market by offering a twelve-month interest rate of 2.75%.
The storage product, too It stayed in the window for just one week. and paid a maximum balance of 250,000 pounds (291,000 euros), it attracted more than 7.3 billion pounds (8.5 billion euros) and almost 250,000 new accounts.
Last week, English newspapers encouraged their readers to “Hurry” to decide where to put your money to take advantage of the “interest war”, because “many offers do not last long.” According to the ranking of The Daily Telegraph As of Saturday, 5.2% from Santander UK is the best payment for a current account.
The English bank has reluctantly raised the interest it pays on savings and after pressure from the Government and the regulator, the FCA, which criticized the speed of the sector in transferring the increase in the official currency rate (currently located at 5.25%) to the loans and the slowness of raising the fees paid to its clients. English banks increased their profits by 20% in the last quarter due to the improvement of their margins.
In the United Kingdom there are 1.5 trillion pounds (1.75 trillion euros) accumulated in savings accounts and, at the same time, some 250,000 million pounds (291,000 million euros) deposited in banks did not receive any payment. In the coming days, the FCA is expected to release the conclusions of a study carried out to determine whether large banks have improved the profitability of their clients’ deposits. The entity threatened “strong measures” for banks that failed to do so.
In Spain, this fight has begun, albeit timidly, with the increase of wages if the income lives or complementary products are contracted, although it hardly exceeds 3%.