Santander UK has today announced that it is increasing the in-credit interest rate on its 123, Select and Private Current Account to 0.50% AER/gross (variable1) on balances up to £20,000.
The new rate of interest will automatically apply to customer accounts from 28 March 2022 and customers will be able to receive up to £100 in interest on their account each year2, in addition to any cashback they earn on selected household bills paid by direct debit3.
Santander UK remains the only bank in the UK to offer customers both cashback on household bills and interest on in-credit balances through a current account.
There are no other changes to how the accounts work, or the £4 monthly fee4 and customers will continue to have access to preferential rates on Santander products through 1I2I3 World 5 and the ability to earn additional cashback on their Debit card spend with Retailer Offers 6.
The full list of Santander UK’s current accounts can be found online.
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Notes to Editors
1) The interest rate on the 123, Select, and Private Current Accounts is variable and does not track the Bank of England base rate.
2) Based on an interest rate of 0.50% AER/gross (variable) and a continuous balance of £20,000.
3) Cashback on household bills is paid monthly via direct debit, capped at £5 in each of the following categories:
1% cashback: Council tax bills
Mobile and home phone bills, broadband and paid-for TV packages
Santander monthly mortgage payments
2% cashback: Gas and electricity bills
Santander Home Insurance premiums (policies administered and underwritten by Aviva Insurance Limited)
Santander Life Insurance premiums (policies administered and underwritten by Aviva Life & Pensions UK Limited)
3% cashback: Water bills
4) The monthly fee for maintaining the 123, Select and Private Current Accounts is £4 and will remain unchanged.
5) Over 5 million Santander customers are part of 1|2|3 World which offers special rates and preferential deals on Santander products. https://www.santander.co.uk/personal/123-world
6) Retailer Offers is a free service that lets customers earn up to 15% cashback from a variety of major Retailers. Customers can switch on Retailer Offers in Online or Mobile Banking, choose the offers and earn cashback when using their Santander debit or credit cards
Santander UK is a financial services provider in the UK that offers a wide range of personal and commercial financial products and services. At 31 December 2021, the bank had around 19,200 employees and serves around 14 million active customers, via a nationwide branch network, telephone, mobile and online banking. Santander UK is subject to the full supervision of the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA) in the UK. Santander UK plc customers’ eligible deposits are protected by the Financial Services Compensation Scheme (FSCS) in the UK.
Banco Santander (SAN SM, STD US, BNC LN) is a leading retail and commercial bank, founded in 1857 and headquartered in Spain. It has a meaningful presence in 10 core markets in the Europe, North America and South America regions, and is one of the largest banks in the world by market capitalization. Its purpose is to help people and businesses prosper in a simple, personal and fair way. Santander is building a more responsible bank and has made a number of commitments to support this objective, including raising over €120 billion in green financing between 2019 and 2025, as well as financially empowering more than 10 million people over the same period. At the end of 2021, Banco Santander had €1.15 trillion in total funds, 153 million customers, of which 25.4 million are loyal and 47.4 million are digital, 9,900 branches and 197,000 employees.