The interest rate on Santander's popular 123 Current Account will be reduced to just 0.6% AER from tomorrow (Monday 3 August). The bank had already cut the rate from 1.5% to 1% AER in May, while introducing a £5 monthly cashback cap for each of its three tiers.
I've got a Santander 123 account (not Lite) which pays interest of 1.5% and 3% cashback on bills. The fee is £2. I'm thinking of changing this to an Edge account which pays no interest, the fee is £3 and just 1% cashback on bills.
I am starting to complete my 14/15 Self Assessment TAx Return. Looking at my Santander 123 accounts, the net interest payments and associated tax payments are clear. I also get cash back payments for direct debit payments.
See where you could earn cashback with your 1|2|3 Current Account, 1|2|3 Lite Current Account or Select Current Account.
Santander 123. The Santander 123 current account is no longer available to new customers, but if you’ve already got one it’ll still earn you money back on your bills. The 123 pays more cashback on some bills than the Edge, and you can earn money on Santander mortgages too.
From September 2022, Santander’s 1|2|3 Current Account is doubling the cashback it pays on energy bills to 4% for the first two months up to a £10 a month cap.
You can also get 1% cashback – again up to £15 a month – on selected monthly household bills paid by direct debit, including council tax, water, gas, electricity, phone, mobile, and paid TV subscriptions.
123 account holders can earn 2 per cent cashback on their gas and electricity bills up to a cap of £5 each month as well 3 per cent cashback on water bills with an additional cap of £5 each...
Santander Edge Up current account. 1% cashback on selected household bills paid by Direct Debit, capped at £15 each month. 1% cashback on supermarket and travel spend on your debit card, capped at £15 each month. Monthly interest of 3.00% AER / 2.96% gross (variable) on balances up to £25,000.
Cashback is a monthly cash reward that we’ll pay directly into your 1I2I3 Lite Current Account, as long as you meet the ongoing eligibility criteria that we’ve set out in Conditions 4 and 5. A cap of £5 applies on the amount of cashback that is paid on each of the eligible percentage cashback categories.