Martin Lewis has issued an important warning to Santander current account holders.
Appearing on today's episode of Good Morning Britain - for his last regular segment on the show - the financial guru revealed Santander will be cutting its interest on its 123 current account.
In January, the Santander 123 current account lowered its interest to one per cent from 1.5 per cent.
But now Santander has announced it will be slashing the interest rate again, down to 0.6 per cent.
Speaking to hosts Adil Ray and Charlotte Hawkins, Martin described the rate as "paltry" due to the £5 monthly fee.
The interest cut will commence from Monday, August 3, affecting all customers with a 123 current account.
He said: "Back in January we learnt that the Santander 123 - one of the most popular bank accounts that we have, you pay £5 a month for it, you get cash back and gives good interest - was cutting its interest from one and a half per cent to one per cent, which I said then was a 'dead duck'."
He continued: "Well that doesn't look that bad now, except on Monday it is now cutting it again to 0.6 per cent, which really is not worth it. You can get 1.16 per cent in NSNI."
"So the main option for people was to drop down to the Santander 123 account that cost just a pound a month and still gives you the cash back and puts your money in top savngs.
"But over the last few days, we had the announcement that it is being changed too."
From October the Santander 123 Lite account will now cost £2 a month.
For more information, read MoneySavingExpert's full Santander 123 Lite analysis to see how you'll be affected and how it compares.
Martin also said that it's going to change the cash back, "so you don't get the three per cent on phone, broadband and mobile, you get the three per cent on water and one per cent on phone, broadband and mobile.
"In reality it's a cashback cut," he says.
In a statement on MoneySavingExpert.com, founded by Martin Lewis, he added: "Of course, less cashback and a bigger fee is a pain in the bum. Yet there’s little better out there. So for most, if you’ll still earn more cashback than the fee costs, you may as well stick."
