Winner of the Best 'Loyalty’ Current Account Provider
To apply for this current account
Go to the Santander website
If you’re looking for a current account which pays interest when you’re in credit, the Santander 123 account could be worth considering.
What’s the deal?
This account pays Monthly interest of 1.50% AER / 1.49% gross (variable) payable on your entire balance up to £20,000. You will receive interest gross, with no income tax deducted. Providing you pay your household bills by direct debit from the account, you will earn cashback of between 1.00% and 3.00% on this spending which could provide a useful financial boost. The account comes with a Visa contactless debit card.
This account has a £5 monthly fee, so you’ll need to make sure you can earn more than this in cashback to make it worthwhile. To get the cashback on your household bills and interest on your balance you must pay at least £500 into your account each month and have at least 2 active Direct Debits.
What’s the verdict?
The 123 account is a good option for anyone who tends to stay in credit and who spends enough on household bills to earn sufficient cashback to cover the monthly fee.
Is this account right for you?
To open this account
- You must be at least 18 years old
- You must be living permanently in the UK
- You cannot be a student or in full term education
- To get cashback on household bills and interest on the balance: Pay a monthly account fee of £5, which will be automatically taken from your account each month
- Fund the account with £500 a month
- Set up at least two Direct Debits. For cashback household bills must be paid by Direct Debit to organisations within eligible categories (refer to provider for full details)
- Mobile App
- Switching Service
- Overdraft Facility
- Online Banking
- Standing Orders
- Direct Debits
- Online Fraud
- Text Alerts
- Online Fraud
You will receive the following:
1.00% cashback on water and council tax.
2.00% cashback on electricity and gas.
3.00% cashback on mobile, home phone, broadband and paid for TV packages.
Plus you will receive 1.00% cashback on Santander Mortgage payments (up to a maximum mortgage payment amount of £1,000) and 2.00% cashback on Santander Home Insurance.
For cashback household bills must be paid by Direct Debit to organisations within eligible categories, refer to provider for full details.
- Great for
- Monthly cashback on selected household bills
- Monthly interest of 1.5% AER (variable) payable on your entire balance up to £20,000
- But be aware that
- A £5 account fee will be taken from your account each month
- You must pay in at least £500 each month and have at least two active Direct Debits
|Balance||Introductory Rate||Follow on rate||Gross AER*|
|£0 - £20000||1.50%|
- Any interest you earn will be tax-free up to your annual personal savings allowance.
- Interest will be paid Monthly.
Overdraft Rates and Charges
|£12.00 - £2,000.00||£1.00 / Daily||Arranged Overdraft Usage fee will depend on the amount you use|
|£2,000.00 - £2,999.00||£2.00 / Daily||Arranged Overdraft Usage fee will depend on the amount you use|
|£3,000.00 - £99,999.00||£3.00 / Daily||Arranged Overdraft Usage fee will depend on the amount you use|
- There is no arranged overdraft usage fee for four months if you switch to this account using Santander's Switching Service
- There is a £12 fee free buffer. There is an overall monthly fee cap of £95 per monthly statement period
|Other Overdraft Charges||Fee/Rate||Notes|
|Unplanned Overdraft Fee||£6.00 / Daily|
|Foreign ATM Charge||1.50% / per item||Minimum £1.99|
|Foreign Exchange Rate||2.75% / per item|
|Foreign Purchase Fee||£1.25 / per item|
|Service Charge||£5.00 / Monthly|
Operating and accessing your account
|Operating your Account||Making Withdrawals|
Mobile App Features
|Make transfers between accounts||-|
|Make transfers to other people||-|
|View transaction history||-|
|View direct debits/standing orders||-|
|Apply for new products||-|
|Use app on multiple devices||-|
|Setup payments, standing orders, or direct debits||-|
|View mini statements||-|
|Make payments to other people||-|
|Use multiple devices||-|
Mobile App features may be limited. Please refer to providers site for more information.
- This account has a Visa Debit card.
- The currency for this account is Pound.