Interest rate changes to on-sale and off-sale savings accounts

Santander reduced interest rates on a range of on-sale and off-sale savings accounts and cash ISAs on 11 August 2025, the bank has confirmed on its savings changes page¹. The reductions cover children's accounts, first home and Help to Buy ISAs, and several issues of its easy access products¹.

The largest cut was to Easy Access Saver Limited Edition (Issue 3), which fell from 4.00% AER/gross (variable) to 3.00% on 1 August 2025¹. The 11 August changes are set out below¹.

Account	Rate shown	Before 11 August	From 11 August
Inheritance ISA	AER/tax-free (variable)	2.85%	2.70%
Junior ISA	AER/tax-free (variable)	2.80%	2.70%
First Home Saver	AER/gross (variable)	2.45%	2.35%
Flexible Saver for Kids	AER/gross (variable)	2.05%	1.95%
Help to Buy ISA	AER/tax-free (variable)	2.45%	2.35%
Easy Access ISA (Issues 22 and 23)	AER/tax-free (variable)	1.30%	1.20%
Easy Access Saver (Issues 26 and 27)	AER/gross (variable)	1.30%	1.20%
Private Easy Access Saver (Issues 15 and 16)	AER/gross (variable)	1.70%	1.60%

The bank said the reductions followed a fall in the Bank of England Base rate from 4.25% to 4.00% on 7 August 2025¹. As a result, it decreased rates on accounts linked to the base rate on 2 September 2025: the Good for Life ISA fell from 4.25% to 4.00% AER/tax-free (variable), and Rate for Life moved from 1.00% for £1+ and 4.50% for £1,000+ to 1.00% for £1+ and 4.25% for £1,000+¹.

"We changed the interest rates on some of our products on 11 August 2025."

Santander UK, Changes to Your Savings Accounts¹

The page also records later changes. On 5 January 2026, the off-sale Santander Edge saver (Issues 1, 2 and 3) moved from 4.00% AER / 3.93% gross (variable) to 3.50% AER / 3.45% gross (variable) after the first 12 months, with interest paid in the first 12 months unchanged¹. On 14 April 2026, Everyday Saver, Instant Saver, Special Reserve Account, ISA Saver and related issues fell from 1.00% to 0.90%¹. On 11 May 2026, Inheritance ISA, Junior ISA, First Home Saver, Flexible Saver for Kids and Help to Buy ISA were reduced again¹. From 1 July 2026, the term of Easy Access Saver Limited Edition (Issue 3) is extended by 12 months with no change to the rate¹.

Why it matters for households

The 11 August 2025 cuts applied to variable-rate accounts, so affected savers earn less interest from that date without needing to do anything. The reductions covered both on-sale accounts, which new customers can still open, and off-sale accounts held by existing customers¹. Accounts tracking the Bank of England Base rate moved later, on 2 September 2025, because the base rate fell on 7 August 2025¹. Junior ISA and children's account rates also fell, which affects money held for under-18s¹. The later entries on the same page show further reductions through January, April and May 2026, so the direction of travel for these variable rates has continued¹. How a provider must tell you about a rate change, and when, is set out in our guide to when a savings provider changes your rate; the mechanics of easy access savings accounts and cash ISAs explain what the different AER and gross figures mean.

What happens next

Santander states that from 28 April 2026 its Banking & Savings General Terms and Conditions include changes to account closure rights, when it may not make a payment, foreign currency cheques, international payments, ISAs, statements, and help with keeping on top of an account and overdraft¹. It also states that from 1 July 2026 the term of Easy Access Saver Limited Edition (Issue 3) is extended by an extra 12 months, with no change to the interest rate¹. No further rate changes beyond those listed have been reported¹.

Sources1 cited