Save every day with Santander's 123 Current Account

Santander has launched the new 123 Current Account, which will pay in-credit interest on a customer's total balance of up to 3% once they have more than £1,000 in their account, up to a maximum balance of £20,000.

This is makes life easier for customers, by making the need to continually move money between savings and current accounts less important.

The 123 account also puts real money back in customers' pockets by paying cashback on gas, electricity, water, council tax and communications direct debits set up on a customer's account - all for a monthly fee of just £2.   New and existing customers will be able to open the account online, in branch or by phone.

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.

"We are also moving away from introductory offers, towards a product that rewards customers for banking with us for many years to come."

Product benefits

New 123 Current Account pays cashback on household direct debits

1% cashback on water and council tax
2% cashback on electricity and gas
3% on mobile, home phone, broadband, and paid-for TV packages

New 123 Current Account also pays in-credit interest

1% AER on the entire balance, once the customer's balance is £1,000 or over 2% AER on the entire balance, once the customer's balance is £2,000 or over 3% AER on the entire balance, once the customer's balance is £3,000 or over (up to £20,000) Santander's ‘123 World'

British households could save as much as £1,000 a year in cashback and interest with the 123 Current Account together with Santander's 123 Credit Card, which pays 1% cashback at supermarkets, 2% cashback at department stores and 3% cashback at petrol stations.

Santander has also launched a simple to use online calculator which customers can personalise to their own household bills and spending to see how much they could save in a year.