14 September 2015

  • 1|2|3 Current Account fee to increase to £5 per month – all benefits remain unchanged

  • 1|2|3 Credit Card fee of £24 p.a. will change to £3 per month (£36 p.a. equivalent)

  • 1|2|3 Credit Card cashback amounts to be capped for new customers

  • 1|2|3 Credit Card: 0% foreign exchange fees for new and existing customers

  • All customers will receive letters explaining the changes and when they will occur

Santander’s 1|2|3 World products have been a resounding success for the bank and its customers, since being launched more than three years ago. Significant numbers of new customers have been attracted to the bank1 and customer experience has improved continually2, in this time.

Since launching the products, the financial landscape has changed significantly. Savings rates have fallen and remained low, and the ongoing costs of running a UK bank have increased as a result of changes to banking legislation and regulation. Because of this Santander is announcing a number of changes to the 1|2|3 Current Account and 1|2|3 Credit Card.

Santander recognises that customers will wish to continue to make the most from both products and so they are encouraged to check the interest and cashback they can earn by using the new updated 1|2|3 Credit Card and Current Account calculators which will be updated from Wednesday 16 September 2015.

Reza Attar-Zadeh, Head of Retail Products at Santander, said: “Since launch we haven’t made any changes to the fee or cashback levels on these products. However, external market factors mean we’ve had to make some changes to ensure the products continue to meet the needs of our customers, but also our shareholders. We’re writing to all our existing 1|2|3 customers and making sure we help them understand the changes and the options available to them.

“Both products continue to offer great value and the vast majority of customers will still be able to generate a good monthly benefit despite the changes. The 1|2|3 World products will remain our flagship banking offers, and we expect them to continue to attract new customers and offer a competitive alternative for people wishing to switch banks.”

1|2|3 Current Account
Savings rates in the market have fallen considerably since the 1|2|3 Current Account was first launched in March 2012, and the cost of running a UK bank continues to increase with changes to banking legislation and regulations. To maintain in-credit interest rates at the current levels so customers can continue to get the value from the account, it is necessary to increase the fee on the 1|2|3 Current Account.

Santander will continue to pay in-credit interest at the same levels as before, on the total balance up to £20,000. Customers with more than £1,000 in the account will receive 1% on the total balance; more than £2,000 in the account will receive 2% on the total balance; and more than £3,000 will receive 3% on the total balance.

1|2|3 Current Account changes

 Product feature 

 Changing from

 Changing to (11/01/16)

 Monthly fee




 1% on Santander Mortgages, 
 Council Tax and Water Rates
 2% on Electricity and Gas Bills
 3% on Communications Bills
 including TV and Broadband

 No change

 In-credit Interest 

 1% on the total balance if more
 than £1,000 is held in the account
 2% on the total balance if more than
 £2,000 is held in the account
 3% on the total balance if more
 than £3,000 is held in the account
 up to balances of £20,000 

 No change

1|2|3 Credit Card
Recent legislation means there has been a significant reduction in the amount of money credit card providers receive from retailers, money which Santander was using to provide benefits to customers.

To make sure new and existing customers continue to get the best possible benefits in the current banking environment, changes to the fee and cashback benefits are needed.

In addition, Santander is introducing a fee waiver on foreign exchange from 16 September 2015 to 31 December 2016 for new customers, and from 11 January 2016 to 31 December 2016 for existing customers.

1|2|3 Credit Card changes (existing customers)

 Product feature

 Changing from

 Changing to (11/01/16)


 £24 annual fee

 £3 monthly fee, equivalent to £36 p.a

 Cashback amounts

 No change

 No change

 Foreign exchange fees

 2.95% of transaction

 0% until 31 December 2016

1|2|3 Credit Card changes (new customers)

 Product feature

 Changing from

 Changing to (16/09/15)

 Changing to (11/01/16)


 £24 annual fee

 No change

 £3 per month Equivalent to £36 p.a.

 Cashback amounts per month

 1% supermarkets – no cashback
 2% department stores – no cashback limit
 3% petrol, national rail and TfL –
 cashback awarded on a combined
 spend of up to £300 (maximum £9

 Maximum £3 cashback per month per
 Supermarkets (1%) on spend up to
 Department stores (2%) on spend up
 to £150
 Transport (3%) on combined spend up
 to £100



 23 months 0% on balance transfers
 and new purchases

 No change

 No change

 Foreign exchange fees

 2.95% of transaction

 0% on all transactions until 31
 December 2016

 No change


The AER remains unchanged for new customers for the 1|2|3 Credit Card at 12.7%. Existing customers’ interest rates will not be affected by this change. The APR for comparison purposes will increase on 11 January 2016 from 16.5% to 18.3%. This is due to the fee increase and not because of any change in the underlying interest rates.

Helping customers
Santander recognises that the changes to the 1|2|3 Current Account and 1|2|3 Credit Card may mean some customers will need to consider whether each product is still right for them.

Santander will be writing directly to all 1|2|3 Current Account and 1|2|3 Credit Card customers telling them about the changes. Details will also be included in their monthly statements and on Santander’s website.

Customers can see a full breakdown of the cashback and interest they earn along with the monthly fee on their 1|2|3 Current Account monthly statement, which will help them decide. The same information is also available via online and mobile banking.

1|2|3 Credit Card customers can see how much cashback they’ve earned on their monthly statement as well as in Online and Mobile banking.


The information contained in our press releases is intended solely for journalists and should not be used by consumers to make financial decisions.

Notes to Editors

1. As at June 2015, Santander had attracted 502,200 customers from other banks using the Current Account Switching Service (CASS) – which launched in September 2013. This represent 1 in 4 of all customers using the service.

2. FRS reported a significant improvement in customer satisfaction in the last year, with the gap to the average of 3 highest performing peers closed (61.7pc vs top 3 peer average of 61.3pc). Further improvement is at the heart of our plans, as we aim to achieve positive customer outcomes every time and across all channels.

Santander UK is a financial services provider in the UK that offers a wide range of personal and commercial financial products and services. It has brought real competition to the UK, through its 1|2|3 products for retail customers and relationship banking model for UK SMEs. As at 30 June 2015, Santander UK was the most switched to bank, attracting 1 in 4 new retail customers. The bank serves more than 14 million active customers with c. 20,000 employees and operates through 900 branches and 68 regional Corporate Business Centres.

Santander UK is subject to the full supervision of the Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA) in the UK. Santander UK plc customers are protected by the Financial Services Compensation Scheme (FSCS) in the UK.

About Us
Banco Santander (SAN.MC, STD.N, BNC.LN)
is a retail and commercial bank, based in Spain, with a presence in 10 main markets. Santander is the largest bank in the euro zone by market capitalization. Founded in 1857, Santander had EUR 1.43 trillion in managed funds, 12,950 branches – more than any other international bank – and 185,400 employees at the close of 2014. It is the largest financial group in Spain and Latin America. It also has significant positions in the United Kingdom, Portugal, Germany, Poland and the northeast United States. In 2014 Santander made an attributable profit of EUR 5,816 million, 39% more than the previous year.

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