Santander 123 account holders will be affected by is slashed interest rates.
The first big hit for savers using high-interest current accounts to bolster the meagre returns on their standard savings accounts arrives tomorrow.
Savers with a Santander 123 current account will see their interest rate cut from up to 3 per cent to a flat rate of 1.5 per cent on Tuesday.
Earlier this year, the Spanish-based bank upped the fee for for its 123 current account from £2 to £5 a month.
In January, Lloyds Bank is also cutting its Club Lloyds current account rate from 4 per cent to 2 per cent, while TSB's rate for its Classic Plus account is dropping from 5 to 3 per cent.
From 1 November, Santander's 123 account will pay a single interest rate of 1.5 per cent on balances up to £20,000.
Previously, the bank paid 1 per cent on balances of £1,000 or more, 2 per cent on balances of £2,000 or more and 3 per cent on balances of £3,000 or over up to £20,000.
While many savers with a Santander 123 account will be worse off after tomorrow, those with balances under £2,000 will benefit from the new flat rate system and receive more interest than they did before.
Across the country, around 4 million savers have a Santander 123 current account, with many previously drawn to its perks and relatively high interest rate.
While the interest rate on the 123 account is being cut, Santander customers will be able to earn cashback on household bills as they did before.
Following the Bank of England's decision to cut interest rates from 0.5 to 0.25 per cent in August, other banks and building societies are expected to wield the axe to their savings rates.
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