Santander has slashed the rate on the latest issue of its eSaver account, the online easy access account that has been a regular in the best buy tables for some time now. But the rate for new customers has dropped to such a low level that the account doesn’t even come into the top 100 easy access accounts.
Previous issues have been market leading – paying up to 3.20% in the summer - but the new offering has now plummeted to just 1.50% gross/AER. The underlying rate has remained the same with a large 12 month bonus meaning the rate falls to just 0.50%.
The real concern about this dramatic move is what the knock on effect could be? It’s quite clear that providers have been following each other while they race to reduce the rates for new issues of their products, in an attempt to not be at the top of the best buys tables. However, will this huge rate reduction (for new customers) from such a huge savings provider cause others to follow in Santander’s footsteps?
With rates this low, providers might as well put a closed sign on the shop window for savers, as clearly there is a lack of desire for funds. Come on providers, you’re not even trying anymore.