Santander pulling best buy easy-access savings account tonight

Tonight, two weeks ahead of schedule, Santander is drawing up his best-affordable savings account.

Savers have until midnight to eSaver Limited Edition deal Pay 2.75 percent on deposits of up to £250,000 – a deal that’s top notch in the independent This is Money best buy savings tables.

The banking giant, which launched the deal just six days ago, initially said interest rates would be available until Nov. 1 unless sold out.

It said the deal was withdrawn after unprecedented demand from new and existing customers.

It also said all applications received before 11:59 p.m. today will still receive the 2.75 percent rate after opening. Requests will then be processed in the course of the following days.

Starting tomorrow, Santander will replace the product with a new release at a lower rate of 2 percent.

For those who miss out, savers can still get an easily accessible 2.75 percent deal with Cynergy Bank, which can be opened with just £1, but this is also likely to be withdrawn soon.

Savings experts, however, downplay any suggestion that Santander’s withdrawal would be a turning point in the savings market.

A spokesperson for the Savings Guru said: “The withdrawal of the Santander product tonight is no surprise – it was great while it lasted, but we expect Santander to see £150m to £200m worth of new uses a day and even big ones. banks cannot deal with that for too long.

Savers should snag the Cynergy deal for 2.75 percent if they missed the Santander deal, because they will in the next 48 hours.

However, Skipton’s move to 2.55 percent is a good sign that the market will consolidate around 2.25 to 2.5 percent in terms of ease of access and we expect this to increase in the run-up to the base rate decision. on Nov 3.

“With a 1 percent increase projected, we could see easy access rates rise above 3 percent by the end of the year.”

Santander’s rate cut is still capping off an odd day in the savings market, where some of the top rates have been pulled.

Earlier today, Allica Bank withdrew its market-leading one-year deal, which yielded 4.5 percent.

Meanwhile, the SmartSave bank withdrew its 5.01 percent five-year rate, with the deal only available since Friday, suggesting savers are so eager to fix even for such a long time.

Over lunch, Leeds Building Society announced it is increasing available rates on its fixed rate Isa products.

Barely an hour later, however, it contacted This is Money to say that the rate increases had already been ‘paused/cancelled’ and that it would update us with new rates once agreed.

Today’s announcements also follow Coventry Building Society’s decision last week to withdraw all of its fixed-rate savings products, just two days after the launch of a wave of best buys.

On Wednesday, Coventry launched three market-leading fixed bonds available to new and existing members paying up to 4.85 percent.

But by 3 p.m. Friday, they were all withdrawn.

Mutuals, Britain’s second-largest mortgage lender, are generally not the sort of savings provider that injects and withdraws interest rates so quickly.

That said, savers are advised to view this as a case of re-pricing a few providers rather than the start of a full-blown market correction.

The Savings Guru spokesman added: ‘We don’t think the fixed rate changes today are a turning point for the savings market, but it is more likely that mispricing will be corrected.

Allica and Cynergy’s price changes on Friday were probably agreed before they knew Coventry Building Society was withdrawing and that’s why they pulled out so quickly today.

“Both are small providers – Cynergy has about £2bn in savings and Allica £1bn, and they just can’t handle the tens of millions of pounds of applications they will have seen.”