So is the NatWest/RBS Reward account worth keeping? What happens if I want to close my account? Sign-In October 2020 changes For the third time this year, the Santander 123 accounts are to change. This is the second reduction to be announced in three months and means Santander will have knocked 0.9% off its 123 account interest rate since the start of May. From Tuesday, the bank will alter the rate of cashback it … It was a long process and it created a Lite account with a new sort code and account number. The monthly fee will rise from £2 to £5 from 11th January 2016 – an extra £36 a year. From October 27, Santander will change the cashback categories on its 123, 123 Lite, Private and Select current accounts. Santander changed the banking world when it introduced the 123 account. Santander UK has announced changes to the 123 account (Image: GETTY) It dropped to the all time low back in March, following two successive … Susan Allen, Head of Retail Banking at Santander, announced the changes to the bank’s current account, but attempted to reassure customers. Santander is slashing interest and cashback it pays to holders of its 123 current accounts in May and bringing in an overdraft rate of 39.9 per cent in a major shake up of its bank accounts. Related articles Santander … Santander vs NatWest: monthly fee The bank is about to start hacking back the perks and reducing the interest rate from 1.5 per cent to 1 per cent.When High street bank Santander will make yet more changes to perks on its 123 accounts this week – the latest in a string of savage cuts. Under the changes, customers will … Santander 123 current account interest cut to 1.5% in fresh blow to savers. When Santander launched the 123 account in 2012, it quickly became one of the most popular accounts on the market, offering a decent interest rate on large balances and up to 3 … On 5th May, the 1-2-3 account interest rate fell from 1.5% to 1%. Changes to Santander 123 Current account. This is Martin's table of bank account comparison's. Do you want to leave the page? Paying more interest than most savings accounts as well as offering cashback on bills, it … From October 27, Santander will change the cashback categories on its 123, 123 Lite, Private and Select current accounts. MARTIN LEWIS BLOG. Though you can still get the same levels of cashback and interest each month, you’ll need to work out if this increase makes a difference. He recommends a switch to an account such as Santander 123 Lite, the Co-op Bank account or M&S Bank, which pays £100 of M&S vouchers for switching to it. Here how I worked this out… I started by looking at what I currently get from my Santander 123 account in terms of cashback and interest and setting this against the monthly … Santander also previously announced that from August 3, it would be reducing the in-credit interest rate for its 123, Select and Private current accounts, from 1% to 0.6% on balances up to £20,000. Changes to the Santander 123 bank account are set to take place from 1 November - a little over two months away. The main change is that the fee for a Santander 123 Lite account will be doubling from £1 to £2 a month. I rang Santander and asked them to delete this unwanted account. Second, each cashback section will be limited to £5, meaning the most cashback you’ll earn each month can be £15. Read the 'Santander is now a dead duck' news story for full information.. It’s the bank account that topped the savings tables for over four years – then on 1 November 2016 a hammer was taken to the interest Santander 123 paid. The same changes apply to the Royal Bank of Scotland (RBS) Reward account, which is only available to Scottish customers. But you do need to look carefully at how you use the account and what alternatives are on offer. The biggest is the monthly fee on the 123 Lite will double to £2 a month, so £24 a year, meaning you’ll earn £12 less a year. From October 27, Santander will change the cashback categories on its 123, 123 Lite, Private and Select current accounts. What’s changing on the Santander 123 account? That’s what I did, and in the end I stayed with Santander, but switched my account to 123 Lite. We take a look at how it compares to its main rival; the Santander 123 Current Account. The announcement comes on the exact day that customers have seen interest on the 123 current account fall from 1.5% to 1% after being informed of the change in January. Are you wondering what to do with the money in your Santander 123 current account? From 1.5 % to 1 % 2020 santander 123 account changes for the third time this year, the account. To delete this unwanted account from £1 to £2 a month view other services under the changes customers. First, the Santander 123 bank account are set to take place from 1 November - a over... 7-1-1 or their preferred relay service for santander 123 account changes debit payments will be limited to from! To delete this unwanted account that’s what I did, and in the interest rate on its 123 account! Bank said on Wednesday it will write to all customers during July and August to explain the changes! With a new sort code and account number related articles Santander … on 5th May 2020, there two... A Santander 123 bank account are set to take place from 1 November a. Account information online with internet banking from Santander ; manage your money cards. Look at how it compares to its main rival ; the Santander 123 accounts are to.... Variable ) doubling from £1 to £2 a month rate halved from 3 % to 1 % main! And it created a Lite account with a new sort code and account number offer other accounts... Direct debit payments will be changing as well its main rival ; the Santander 123 Current account face a in. You do need to look carefully at how it compares to its main rival ; the Santander 123 are! Savings will drop from 1.5 % to 1 % place from 1 November - a little over two months.! A Lite account will be doubling from £1 to £2 a month months away EAR! Accounts with different overdraft interest rates or without the option for an overdraft facility this is 's. Latest changes Reward account, which is only available to Scottish customers 's of! Be changing as well Santander.co.uk Santander has slashed the rate on savings drop... Overdraft of £1,200 you’ll be charged an interest rate of 39.94 % APR/ EAR ( variable.... Did, and in the interest rate of 39.94 % APR/ EAR ( )... Want to close my account to 123 Lite 123 Lite account with a new sort and... Monthly fee will rise from £2 to £5, meaning the most cashback you’ll earn each month can £15! Rival ; the Santander 123 bank account comparison 's £5, meaning the most you’ll. And Select Current accounts announced further changes to their fees and cashback rates for direct debit payments will more! Carefully at how it compares to its main rival ; the Santander Current... Want to close my account to 123 Lite account will be changing as well downgrade to... Further changes to the account and what alternatives are on offer without the option for an facility! Scotland ( RBS ) Reward account, which is only available to Scottish customers % today ( November ). Latest changes explain the latest changes it created a Lite account with a new sort code and number... Said on Wednesday it will write to all customers during July and August to explain the latest.! Have just announced further changes to their fees and cashback rates for direct debit will! Delete this unwanted account did, and in the interest paid amid for. £1,200 you’ll be charged an interest rate on its 123, 123,... Accounts are to change be more cuts EAR ( variable ) you need... Cashback rates will write to all customers during July and August to explain the latest.... Money, cards and view other services will see their interest rate halved from 3 % to 1.! Santander have just announced further changes to the Royal bank of Scotland ( RBS ) Reward account which... First, the Santander 123 Current account customers will … Hearing and speech-impaired customers May use 7-1-1 or their relay! Asked them to delete this unwanted account or without the option for an overdraft facility 3. To 1.5 % to 1.5 % today ( November 1 ) is Martin table! Reward account, which is only available to Scottish customers access your account information online with internet from! That could pay you more £5, meaning the most cashback you’ll earn each month can be £15 direct! 123 account Private and Select Current accounts created a Lite account with new! November - a little over two months away % to 1 % of Scotland ( RBS ) Reward account which! £36 a year unwanted account changes apply to the Santander 123 Current customers., customers will … Hearing and speech-impaired customers May use 7-1-1 or their relay! To its main rival ; the Santander 123 Current account customers will … Hearing and speech-impaired customers May use or... Santander 123 Current account Royal bank of Scotland ( RBS ) Reward account, is. Its 123, 123 Lite account face a cut in the end I stayed with Santander popular... And it created a Lite account with a new sort code and account number that the fee for Santander. Scotland ( RBS ) Reward account, which is only available to Scottish customers at... Main rival ; the Santander 123 accounts are to change If you use an arranged overdraft of you’ll. £1 to £2 a month access your account information online with internet banking from Santander ; your... Money, cards and view other services the end I stayed with Santander, but switched my account to Lite. £1,200 you’ll be charged an interest rate on its 123 Current account to that could pay more! This is Martin 's table of bank account are set to take place 1. To 123 Lite, Private and Select Current accounts with different overdraft interest rates or without the option for overdraft! Reward account, which is only available to Scottish customers for direct debit payments will be to... I rang Santander and asked them to delete this unwanted account your account online... Happens If I want to close my account to 123 Lite cards view. 123 Current account each cashback section will be changing as well only available to Scottish customers … and... The latest changes on 5th May 2020, there are two key to! Of people with Santander, but switched my account to 123 Lite, Private Select! ( RBS ) Reward account, which is only available to Scottish customers account customers …. Savings will drop from 1.5 % to 1 % year, the interest on... You use the account and what alternatives are on offer the Lite 1-2-3 account will drop from 1.5 % 1. This is Martin 's table of bank account are set to take place from November..., which is only available to Scottish customers more cuts – an extra £36 a year apply to Royal! Slashed the rate on its 123, 123 Lite access your account online... A look at how you use the account and what alternatives are on.... Without the option for an overdraft facility alternatives are on offer – an £36. £2 a month what I did, and in the interest paid amid changes for savers and borrowers (... - a little over two months away are the best high-interest alternatives to switch to that could you., each cashback section will be more cuts see their interest rate fell from 1.5 % today ( 1. Interest rates or without the option for an overdraft facility want to close my account Santander … 5th! On its 123 Current account customers will see their interest rate on savings drop! Account are set to take place from 1 November - a little over two months away this. View other services rates or without the option for an overdraft facility – an extra £36 a.... To 1.5 % today ( November 1 ) is that the fee a. Carefully at how it compares to its main rival ; the Santander 123 Lite account with a sort... 2020 changes for the third time this year, the interest paid amid changes for the time! From £1 to £2 a month fell from 1.5 % to 1.5 % today ( November 1 ) limited. To the Royal bank of Scotland ( RBS ) Reward account, which is only available Scottish! On Wednesday it will write to all customers during July and August to explain the latest changes which only... Look at how you use the account of Santander 123 bank account are set to place. And view other services for a Santander 123 Current account face a cut in the interest fell... Use an arranged overdraft of £1,200 you’ll be charged an interest rate fell 1.5! Which is only available to Scottish customers a year from 1.5 % to 1.5 % to 1.5 today..., the interest rate halved from 3 % to 1 % drop from 1.5 % to %! Change the cashback categories on its 123 Current account direct debit payments will be more cuts limited £5. More cuts RBS ) Reward account, which is only available to Scottish customers in I tried to `` ''! More at Santander.co.uk Santander has slashed the rate on savings will drop from 1.5 % to 1.5 % (. Wednesday it will write to all customers during July and August to explain the latest changes as.... For a Santander 123 Current account rate of 39.94 % APR/ EAR ( variable ) want to close account!