Santander has announced the discontinuation of its popular bank account today, prompting customers to explore alternative cashback options.
The 123 Lite current account, which offered 3% cashback on household bills for a monthly fee of £2, is being scrapped by the banking giant. Customers were also able to receive 3% cashback on gas and electricity bills with this account, which was introduced in 2016.
Affected Santander 123 Lite customers will be automatically transferred to the Everyday current account, which does not provide interest on balances or cashback rewards.
The decision to withdraw the 123 Lite current account was made following a review and to streamline the product range, according to Santander.
Additionally, Santander will be discontinuing the 1% cashback offer on supermarket, fuel, and travel purchases for its Santander Edge current account starting September 9, 2025. However, the account will retain its 1% cashback on bills, continuing to charge customers £3 per month, totaling £36 annually.
For customers seeking cashback alternatives, JP Morgan’s Chase digital bank offers 1% cashback on groceries, travel, and fuel purchases up to a maximum of £15 per month. Nationwide’s FlexDirect account provides 1% monthly cashback on debit card spending, capped at £5 per month, along with 5% interest on balances up to £1,500.
Zopa Bank’s new current account offers 2% cashback on up to £1,500 of bill direct debits per year, with a fixed rate guaranteed for 12 months. Additionally, customers can earn 2% interest on cash balances with no earning limit, also fixed for 12 months before becoming variable.
In other news, Santander has introduced a new feature in its OneApp banking app aimed at protecting customers from scammers. The update includes technology that automatically blurs the user’s mobile screen to prevent unauthorized access during screen sharing activities, a method often exploited by scammers to gain sensitive information like banking credentials.
Scammers utilize remote access and screen sharing tools to deceive individuals into downloading legitimate software, such as AnyDesk or Teamviewer, to gain access to personal data like mobile banking details.
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