If you’ve been enjoying cashback on your household bills with Santander, you might want to take note: one of their popular accounts is disappearing.
From Thursday, 21 August, the bank will close its 123 Lite current account, which has been around since 2016 and offered 3% cashback on gas and electricity bills for just a £2 monthly fee.
What Happens to Current Customers
Santander has said that 123 Lite account holders will be automatically moved to the Everyday current account.
The catch? This new account doesn’t offer any interest on balances or cashback, meaning loyal customers could lose a valuable perk.
A spokesperson 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.”
Changes to Santander Edge Cashback
Santander isn’t stopping with just 123 Lite.
From 9 September, the bank will also scrap the 1% cashback on supermarket, fuel, and travel spending for its Edge current account, though cashback on bills will continue.
This account comes with a £3 monthly fee, which totals £36 a year.
Alternatives for Cashback Lovers
If losing cashback perks has you worried, there are still options out there—many of them free:
- Chase (JP Morgan): Offers 1% cashback on groceries, travel, and fuel, up to £15 per month.
- Nationwide FlexDirect: Gives 1% monthly cashback on debit card spending, up to £5 per month, and pays 5% interest on balances up to £1,500 for the first year. That could add up to £75 in interest annually. After a year, the rate drops to 1%.
- Zopa Bank: Provides 2% cashback on up to £1,500 of bill direct debits per year, guaranteed for 12 months. Plus, it pays 2% interest on cash balances with no limit, also fixed for a year before becoming variable.
Bottom Line
If you’ve been relying on Santander’s 123 Lite for cashback, now is the time to explore alternatives.
From digital banks like Chase to flexible accounts like Nationwide and Zopa, there are ways to keep earning rewards and interest without paying hefty fees.
