Santander issues important savings update for bank account owners

dailyrecord.co.uk:

Anyone with a Santander bank account has been informed of changes that will be coming to their accounts.The bank will increase the interest rates on its savings accounts in line with the Bank of England's decision to raise interest rates again.At the moment, the Santander Rate for a Life ISA sits at five percent, but this will increase to 5.25 percent when the base rate changes on August 15.In comparison, the bank’s Good for Life savings account pays an interest rate of 5.25 percent for savers with an account balance of £1,000 or more, Birmingham Live reports.

And as of next week, this will go up to 5.50 percent. Anyone with more than £1 in their accounts will continue to receive a rate of one percent, the high street bank has confirmed.

Lucinda O’Brien, finance expert at money.co.uk, warned: “The Bank of England interest rate can influence all other interest rates as it tries - or, in recent months, fails - to control inflation.

With the latest rate hike and inflation still high, it is not looking like the situation is going to improve any time soon, so it is important to adjust and build a savings pot to help get through these difficult times and still achieve your long-term financial goals. “Despite all of the problems high-interest rates have brought, there is somewhat of a silver lining in that it has also influenced an increase in average savings rates, with Bank of England ISAs jumping from 0.5 percent to 2.51 percent in the last year, as well as fixed-rate bonds increasing from 0.73 percent to 3.23 percent.”Taking to Twitter, one disgruntled saver said: "It is about time that the 123 Account Interest was put back to 3% as before.