Cashback, up to 3% interest; Santander debuts 1-2-3 current account5 March 2012 by Douglas Blakey
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 current account.
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 less important.