Santander has rolled out the 123 Current
Account, offering customers in-credit interest at a competitive 3%
for balances of between £3,000 and £20,000.
For accounts which drop below the £3,000
limit, Santander is paying interest of 1% for balances between
£1,000 and £2,000 and 2% on the entire balance for accounts with
balances of between £2,000 and £3,000.
Santander launched the 123 current account
on 5 March.
In addition to the headline-grabbing
interest rate incentive, Santander is offering a cash-back
incentive of 1% cashback at supermarkets, 2% cashback at department
stores and 3% cashback at petrol stations.
The account also offers cashback on
household direct debits: 1% cashback on water and council tax; 2%
on electricity and gas and 3% on mobile, home phone, broadband, and
paid-for TV packages.
The account is not however free of charge
with all customers liable to pay £2 a month to operate the 123
Santander will charge customers utilising
an arranged overdraft facility £1 per day for the service, capped
at 20 days in each monthly statement period.
Unauthorised overdrafts will be charged at
£5 per day. No customer will pay more that £95 per month overdraft
fees in any monthly statement period.
Rami Aboukhair, director of products and
marketing at Santander, said:
“We understand that times are tough at the
moment, and we believe our new 123 Current Account will help make a
real difference to people by providing interest on balances and
cashback on their everyday bills.
“Every household in Britain has to pay
bills, and the 123 Current Account will reward households when they
are paying these bills, and reward them when they aren’t with great
in-credit interest rates.
“The attractive in-credit rate makes it
even easier for customers to manage their finances, by making the
need to continually move money between savings and current accounts