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Changes to your 1|2|3 Current Account

Why are we making these changes?

We've reviewed our current accounts and needed to make a change to your 1|2|3 Current Account. This change is due to the market expectation that interest rates will stay lower for longer, compounded by increased costs brought about by changes in the banking industry.

On the 1st November 2016 we changed the interest rate payable on the 1|2|3 Current Account to a rate of 1.50% AER/1.49% gross (variable) on balances up to £20,000.

This change means you’ll now earn interest even if your balance is below £1,000.

Balance Interest rate before 1 November Interest rate from 1 November 2016
Below £1,000 0.00% 1.50% AER/1.49% gross (variable)
Once you have £1,000 1.00% AER / gross (variable) 1.50% AER/1.49% gross (variable)
Once you have £2,000 2.00% AER/1.98% gross (variable) 1.50% AER/1.49% gross (variable)
Once you have £3,000 3.00% AER/ 2.96% gross (variable) 1.50% AER/1.49% gross (variable)

You will continue to earn interest on the entire balance up to £20,000.

Check the cashback calculator to see how much you can earn.

From 9 January 2017, the Arranged Overdraft Usage Fee changed to reflect the amount of Arranged Overdraft you use.

This means, if you use an overdraft of £2,000 or more, you will pay more in fees. If you use an overdraft of less than £2,000, the fee will remain the same. As before, no overdraft fees will apply when you use an Arranged Overdraft of £12 or less.

The change is effective from your first monthly statement period beginning on or after 9 January 2017 and you will
see the new fees on statements you receive on or after 9 February 2017.

Arranged Overdraft used Previous fee New fee from 9 January 17
Below £2,000 £1 a day £1 a day
£2,000 to £2,999.99 £1 a day £2 a day
£3,000 and over £1 a day £3 a day

All other account features, including the account fee, cashback categories and access to preferential 1|2|3 World offers will remain the same.

It's important to consider if the account is still right for you as the changes could mean that you earn less in interest each month, or pay more for using an overdraft of £2,000 or more.

Representative example
0% EAR (variable) Arranged Overdraft. Arranged Overdraft Usage Fee of £1 per day. If you are switching to Santander then there will be no Arranged Overdraft Usage Fee for the first 4 months. Assumed Arranged Overdraft credit limit: £1,200. Actual amount and fee may differ depending on the amount of overdraft you are using.


Check your cashback and interest

The account continues to give you a number of benefits in addition to interest on your balance. You will also continue to benefit from:

Cashback on household bills paid by Direct Debit:

  • 1% cashback – water and council tax and the first £1,000 you pay towards your Santander monthly residential mortgage payment

  • 2% cashback –  gas, electricity and Santander Home Insurance premiums (policies administered and underwritten by Aviva Insurance Limited);

  • 3% cashback – mobile and home phone bills, broadband and paid for TV packages

Access to 1|2|3 World, which includes preferential offers and rates on other Santander products. For more details please ask in branch or visit

Please remember there is a monthly account fee of £5 and to earn cashback and interest you need to:

  • pay in at least £500 each month (transfers between Santander personal accounts in your name won’t count towards this); and

  • have at least two active Direct Debits on your account.

To check how much cashback and interest you're currently earning, please have a look at your monthly account statement or log on to Online or Mobile Banking. You can see how much you could earn after the interest rate change takes place by using the cashback calculator

Household bills don't include TV licences, maintenance contracts (e.g. boiler repair cover), other insurance contracts, bills for commercial use or commercial mortgages. Cashback paid monthly. The maximum mortgage payment amount that qualifies for cashback is £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.

Helping you manage your overdraft
If you have an overdraft and don't want to pay the higher fees, you will need to reduce your overdraft usage to below £2,000.

We do offer current accounts with lower or no overdraft fees. Please refer to our current account range for further information about our product range

We offer a range of services and tools to help you manage your account and prevent or minimise overdraft fees. This includes Online and Mobile Banking and free account alerts, such as an alert to remind you when your account balance is below a set amount, or when you’re approaching your Arranged Overdraft limit. You can set up account alerts by logging onto Online Banking.

If you've decided your 1|2|3 Current Account is still right for you and you are happy to keep it then you don't need to do anything.

Your options
If you feel your account is no longer right for you it's easy to transfer to another Santander bank account, and we have the following for you to consider:

1|2|3 Lite Current Account - gives you cashback on selected household bills and all the standard features you'd expect from a current account. To earn cashback you must pay in at least £500 a month, have at least two active Direct Debits and log on to Online or Mobile Banking at least once in every three months. There's a £1 monthly account fee.

The Everyday Current Account - this has all the essentials you need to manage your money. It doesn't offer cashback or interest on your balance and has no monthly fee.

The Choice Current Account - this is designed to help avoid Unarranged Overdraft Fees. It doesn't offer cashback or interest on your balance and has a monthly fee of £10.

For more information on the current accounts available you can compare our range of current accounts.

If you'd like to transfer to one of the above accounts, please visit your local branch or call us on the number below. You can also close your account at any time without charge.

We also offer the Basic Current Account but you can't transfer to this account so you have to open a new account. This account doesn't have an overdraft facility, chequebook, or Visa debit card. It doesn't offer cashback or interest on your balance.

Questions about these changes?
If you have any questions about these changes, please visit your local branch or call us on 0800 9 123 123 (Lines are open 7am to 11pm Monday to Saturday, and 8am to 10pm Sundays).

Frequently asked questions

AER stands for Annual Equivalent Rate and shows what the interest rate would be if we paid interest and added it to your account each year.

Gross rate explained
The gross rate is the interest rate we pay where no income tax has been deducted.

Rates may change and we pay interest each month. To find details of our fees and interest rates, visit or ask for the latest Key Facts document at any branch.

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