Santander discontinues well-liked bank account featuring 3% cashback reward
In the wake of Santander's decision to close its 123 Lite current account, customers seeking alternatives for cashback benefits on household bills have several options to consider. Here's a roundup of the most promising offers currently available in the UK market.
Firstly, let's take a look at the Santander Edge Current Account. Replacing the 123 Lite account, this new offering comes with a £3 monthly fee. However, it still provides 1% cashback on household bills such as water, council tax, energy, broadband, and TV packages, as well as 1% on supermarket and travel spending. Additionally, it includes a 6% savings interest on balances up to £4,000 and fee-free overseas debit card usage[1].
Another contender is the Chase Current Account, a digital bank offering from JP Morgan. It provides unlimited 1% cashback on debit card spending for the first year, with a monthly cashback cap of £15. To qualify, customers must pay in at least £500 monthly. Linked with a 3.25% savings account and a fee-free debit card for overseas spending[1].
For those seeking a fee-free option, the Zopa Bank Biscuit Account might be the best choice. Marketed as the UK’s best free current account for everyday value, it offers significantly more value than Santander’s former 123 Lite account. Zopa emphasizes switching to their account for better cashback and savings rewards, appealing to those losing perks from Santander’s changes[2][4]. The account offers 2% cashback on up to £1,500 of bill direct debits per year, guaranteed for 12 months. Moreover, Zopa Bank does not specify a maximum limit for its 2% interest rate on cash balances[3].
Lastly, Nationwide's FlexDirect account remains a viable option, offering 5% interest on balances in the account up to £1,500. However, the interest rate drops to 1% after a year, and if the maximum amount is kept in the account, it would earn £75 over the year[5].
These options reflect the current best practical alternatives for cashback benefits on household bills in the UK market following Santander’s 123 Lite closure[1][2]. It's essential for customers to carefully consider their needs and preferences when choosing the right account for them.
[1] - Source for Santander Edge, Chase, and Zopa Bank details: https://www.moneysavingexpert.com/banking/santander-edge-current-account/ [2] - Source for Zopa Bank Biscuit Account details: https://www.zopa.com/current-account/ [3] - Source for Zopa Bank cashback and interest details: https://www.zopa.com/current-account/cashback/ [4] - Source for Zopa Bank's appeal to Santander 123 Lite customers: https://www.which.co.uk/news/2021/09/zopa-biscuit-account-launched-as-alternative-to-santander-123-lite/ [5] - Source for Nationwide FlexDirect account details: https://www.nationwide.co.uk/banking/current-accounts/flexdirect/features/interest-rates
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