Santander is cutting interest rate on savings account in blow for customers

The Bank has explained the reduction to 4.2 per cent is due to the current market conditions.

Customers have been enjoying the high rate of 5.2 per cent for almost two months - since March 8.

All other terms of the account remain the same and customers can access their money at any time with no charges.

For those looking for a higher rate, Santander have other accounts that offer interest rates up to seven per cent.

The Santander Edge Saver offers seven per cent AER / 6.78 per cent gross (variable) interest on balances up to £4,000.

This includes a 2.50 per cent AER (variable) bonus rate which is available for the first 12 months from opening the account - and is exclusive for Santander Edge current account customers.

Another option is their Regular Saver providing five per cent AER/gross which is fixed for 12 months.

Britons can save up to £200 a month paid by standing order from a Santander current account.

Alternatively their Easy Access Saver offers 1.70 per cent AER/gross (variable) for 12 months.

For savers wanting to bank elsewhere, the top easy-access cash ISAs pay 5.17 per cent – so even if someone doesn't need the tax benefits of an ISA, they may want to opt for an ISA in order to get higher rates, according to moneysavingexpert.com.

Alternatively Monument Bank pays 5.01 percent, but is for those looking to save a minimum of £25,000. The account offers unlimited withdrawals.

Those who have less to save can opt for Principality Building Society. Their Online Bonus Double Access account pays five per cent, with a minimum deposit of £1.

However, it should be noted that it does have a 12-month 0.15 per cent bonus as part of the rate, which means it will drop after this period.

Those who can afford to lock their money away for a period of time can get up to 5.25 per cent on Atom Bank's fixed rate saver.

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The minimum deposit on the account is £50 and the maximum is £100,000

A Santander spokesperson said: "Santander regularly reviews product rates to ensure that we continue to help our customers make the most of their money in a way that is sustainable in the changeable wider market conditions.

"Our Easy Access Saver Limited Edition (Issue 3) customers will continue to benefit from our best easy access rate of 4.20 per cent from May."