123 Current Account

The award winning bank account that pays you cashback on your household bills and interest on your balance, for just £2 a month.

Does your bank account pay you cashback and interest?

Cashback on household bills:
1% on water, council tax bills and Santander mortgage payments²
2% on gas and electricity bills
3% on mobile phone, home phone, broadband and paid-for TV packages
+ Up to 3% AER (variable) interest on your balance

Cashback calculator

What you need to do:

Be aged over 18 and live permanently in the UK

Read and understand the terms & conditions of the account

Pay a monthly account fee of £2, fund the account with £500 a month (a minimum balance of £1,000 is required to receive interest); and set up a minimum of two Direct Debits. For cashback household bills must be paid by Direct Debit.

Legal details

Apply now

Moneyfacts.co.uk BEST BUY Santander 123 Current Account

Account features:

Cashback - on household bills paid by Direct Debits:

1% cashback on water, council tax bills and Santander mortgage payments (up to maximum monthly mortgage payments of £1,000)
2% cashback on gas and electricity bills
3% cashback on mobile phone, home phone, broadband and paid-for TV packages.

Interest - on your current account balance:

1.00% AER/gross (variable) on balances from £1,000
2.00% AER/1.98% gross (variable) on balances from £2,000
3.00% AER/2.96% gross (variable) on balances from £3,000 and up to a maximum of £20,000.

Interest rates will apply on the first £20,000 of your entire balance once you have at least £1,000 in your account.

A four month fee free Arranged Overdraft for 4 months when you switch to us using our 5 Star rated Switcher Service (depending on circumstances). See representative example.
Visa debit card a quick & secure method of purchasing goods & services at home and abroad.
5 Star rated Switcher Service - our dedicated switching team will manage switching your current account including moving all your standing orders and Direct Debits. We'll also keep you informed of progress along the way by letter, text and email*. - read more. Simply select the switching option when you are completing your application (tick yes when it asks you if you have another bank account).

Representative Example - 123 Current Account overdraft

0% EAR (variable) Arranged Overdraft. No Daily Arranged Overdraft Fee for the first 4 months. Then £1 per day capped at 20 days each monthly statement period applies thereafter.

Assumed Arranged Overdraft credit limit: £1,200. Actual amount may differ.

If you don't switch, the Daily Arranged Overdraft fee will apply from account opening.

* To benefit from text and email updates you will have to provide us with your most up to date email address and mobile phone number as part of your online application. Should you wish to update your details at any other time, please log on to Online Banking, visit your local branch, or call us on 0845 609 0010.

Account Servicing:

Easy access to your account 24 hours a day with our internet and phone banking service. Plus access to almost 1,200 branches and 35 regional business centres.
Online Banking: Make the most of your account by using our online Banking service. You can easily check your statements, pay bills, move money and lots more. You will automatically be registered when you apply - read more/see demo.
Mobile banking: If you like to keep up to date with your banking on the go, then our Mobile Banking Service will suit you perfectly - also available as a free iPhone and iPad app from the App Store - read more
Free text message and email alert service - Our alert service offers Online Banking customers the option of setting up low/high balance and Payment alerts.

Extra offers available to 123 customers

Earn more cashback - Open a 123 Credit Card too and not only will you earn cashback on your everyday spend, we'll refund the first year's annual fee on your 123 Credit Card¹. Offer valid until 30.06.2013. 22.8% APRrepresentative (variable). Click here for full details. For your convenience you can apply for the 123 Credit Card within your 123 Current Account application.
eSaver - eSaver is an online savings account with instant, penalty free access 24 hours a day. Click here for full details. To save you time you can apply for an eSaver at the same time you apply for a 123 Current Account.

EXCLUSIVE 18 Month Fixed Rate Bond* - for our 123 Current Account or 123 Credit Card customersclick here for full details.

Term	Maturity	Tier	AER (gross/fixed)
18 Months	01/12/2014	£500+	1.85 %
		£200k+	1.90 %

30% off Home Insurance -Existing 123 Current Account customers can apply for an exclusive 30% discount on Santander Options Home Insurance, click here for more information. Subject to availability.

Important information about the 123 Current Account

To benefit from cashback on household bills and interest on your balance, just follow these steps:
Pay a monthly account fee of £2 (which will be automatically taken from your account each month);
Fund the account with £500 a month (a minimum balance of £1,000 is required to receive interest). This is not a calendar month, it is the month from the date you opened your account. Interest and transfers from any other Santander accounts do not count towards the monthly funding amount.
Set up a minimum of two Direct Debits. For cashback household bills must be paid by Direct Debit to organisations within eligible categories.
Household bills include electricity, gas, council tax, water and communications such as mobile and home phone, broadband, paid for TV packages and Santander mortgages.² The maximum mortgage payment amounts that qualify for cashback are limited to £1,000 per month (for either single or multiple monthly Direct Debits). Mortgage cashback applies to Santander UK plc mortgages. The 1% cashback on water and council tax bills also applies to rates in Northern Ireland. Household bills do not include TV licence, maintenance or insurance contracts, commercial use or commercial mortgages. Cashback paid monthly.
Cashback can only be earned through Direct Debit payments within the categories to companies categorised as water, electricity, gas or communications suppliers or as council tax issuing institutions in the Santander 123 Current Account Eligible Originators Classification Listing ©, which contains all major providers.
Santander has categorised all companies within eligible cashback categories as accurately as possible. Click here to check if your provider is listed as eligible for cashback.
The monthly account fee will be taken even if you do not qualify for cashback/interest benefits in a specific month.
Cashback is paid monthly.

¹123 Credit Card offer:To qualify for this refund you must: (i) open or hold a 123 Current Account; and (ii) open or hold a 123 Credit Card (iii) set up a Direct Debit from the 123 Current Account to pay your 123 Credit Card within 30 days of either opening your 123 Current Account or 123 Credit Card (whichever occurs latest). The annual fee charged for the first year will then be refunded to your 123 Credit Card account within 21 days from the later of (i) activating your card and/or (ii) setting up the Direct Debit from your 123 Current Account. Offer valid until 30/06/2013. Includes all major retailers, UK train operating companies, online train ticket retailers and trains operated in Northern Ireland by NI Railways. 3% cashback applies on spend up to £300 a month on either petrol or rail and TfL travel or a combination of these. Purchases not eligible for cashback include (a) TfL travelcards, passes and Oyster Card top up purchases made at newsagents, garages and off-licences (b) NI Railways train tickets purchased online (c) Eurotunnel Le Shuttle and (d) train ticket purchases from travel agents or tour operators. Other cashback exclusions, limits and terms apply. For full cashback terms click here.

²The maximum mortgage payment amounts that qualify for cashback are limited to £1,000 per month (for either single or multiple monthly Direct Debits). Mortgage cashback applies to Santander UK plc mortgages. The 1% cashback on water and council tax bills applies to rates in Northern Ireland. Household bills do not include TV licence, maintenance or insurance contracts, commercial use or commercial mortgages. Cashback paid monthly.

*AER based on funds deposited by 1st June 2013. If you deposit funds after 1st June 2013, the interest you receive may be less than the advertised AER. Fixed rate bonds are subject to availability and can be withdrawn from sale at any time. Rates effective from 2nd May 2013.

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The Santander 123 Current Account was awarded a Moneyfacts.co.uk best buy award, and was also awarded 5 stars from Defaqto, an independent financial research company which provides unbiased information to customers. So you can rest assured you've chosen one of the best current accounts available on the market.

AER stands for Annual Equivalent Rate and shows what the interest would be if we paid interest and added it to your account each year. The gross rate is the interest rate we pay before income tax is taken off. Interest is calculated daily and paid monthly. Rates may change.

EAR stands for Effective Annual Rate and represents the yearly cost of an overdraft, which takes account of how often we charge interest to the account, and does not include any other fees or charges. Overdrafts depend on your circumstances and you must repay any overdraft when we ask in line with our General Terms and Conditions.

Rates and information correct as at 2nd May 2013