Santander is closing popular bank account with 3% cashback today
Santander is closing its 123 Lite current account today, leaving customers to look elsewhere for it's favoured cashback perks. Here's what you need to know about the closure
Santander is scrapping a popular bank account today, forcing customers to seek cashback benefits elsewhere.
The banking giant is axing its 123 Lite current account. The account, which launched in 2016, provided 3% cashback on household bills for a £2 monthly charge. Account holders could also secure 3% cashback on their gas and electricity bills through this product.
Santander 123 Lite customers will be transferred automatically to its Everyday current account, though this provides no interest on balances or cashback rewards.
Santander explained: "Following a review of our 123 Lite current account, which was last on sale to new customers in November 2022, and to simplify our product range, we have decided that now is the right time to withdraw the account."
Santander is also ditching the 1% cashback deal on supermarket, fuel and travel purchases on its Santander Edge current account from September 9, 2025.
Luckily, this account will maintain its 1% cashback on bills, reports This is Money. This account carries a £3 monthly charge which would see customers paying £36 annually.
Where else can you still get cashback?
If you are unhappy about missing out on cashback for your bills, alternatives are available. JP Morgan's digital bank, Chase, provides 1% cashback on groceries, travel and fuel purchases up to a ceiling of £15 per month.
Nationwide's FlexDirect account offers 1% monthly cashback, of up to £5 a month, on debit card spending. The account also provides 5% interest on balances in the account up to £1,500.
This could earn you £75 over the year if the maximum amount was maintained in the account. Note that after a year, however, the interest rate drops to 1%.
On the other hand, Zopa Bank's new current account pays 2% cashback on up to £1,500 of bill direct debits per year, with the rate guaranteed for 12 months.
Zopa also provides 2% interest on cash balances, with no limit on how much customers can earn. The rate is fixed for 12 months and will then become variable.
This follows news of Santander launching new bank app feature it claims will protect its customers from scammers.
A recent update to its OneApp banking app offers new technology that automatically blurs the user's mobile screen to averts users from banking when screen sharing is detected.
The method sees scammers use remote access and screen sharing technology to enter accounts and confirm personal information.
Scammers are skilled in persuading targets to download legitimate screen sharing software, like AnyDesk or Teamviewer, and gaining access to mobile screens and GDPR and passwords, such as mobile banking credentials.
