Santander is axing a popular bank account from tomorrow, leaving customers to look elsewhere for cashback perks.
The bank will shut its 123 Lite current account as of Thursday 21 August.
The account, launched in 2016, came with 3 per cent cashback on household bills for a £2 monthly fee.
Customers could earn 3 per cent cashback on their gas and electricity bills with this account.
Santander 123 Lite customers will be moved automatically to Santander’s Everyday current account, but this offers no interest on balances or cashback.
Santander said: ‘Following a review of our 123 Lite current account, which was last on sale to new customers in November 2022, and to simplify our product range, we have decided that now is the right time to withdraw the account.’
> Read more: Our pick of the best bank accounts
Axed: Santander is closing its 123 Lite current account and moving customers to its Everyday current account
Santander is also scrapping the 1 per cent cashback offer on supermarket, fuel and travel spending on its Santander Edge current account from 9 September.
It will continue to pay 1 per cent cashback on bills, however.
This account comes with a £3 monthly fee which would see customers paying £36 a year.
Where can you still get cashback on your spending?
If you are a Santander 123 Lite current account customer and are not happy about losing out on cashback on your bills, there are a handful of bank accounts that still offer it.
What’s more, most of them are free.
JP Morgan’s digital bank, Chase offers 1 per cent cashback on groceries, travel and fuel spending up to a maximum of £15 per month.
Nationwide’s FlexDirect account comes with 1 per cent monthly cashback, up to £5 a month, on debit card spending. The account also pays 5 per cent interest on balances in the account up to £1,500.
This would earn £75 over the year if the maximum amount was kept in the account. After a year the interest rate drops to 1 per cent.
Meanwhile Zopa Bank’s new current account pays 2 per cent cashback on up to £1,500 of bill direct debits per year, with the rate guaranteed for 12 months.
Zopa also offers 2 per cent interest on cash balances, with no limit on how much customers can earn. The rate is fixed for 12 months and will then become variable.
SAVE MONEY, MAKE MONEY
Sipp cashback
Sipp cashback
Up to £2,000 cashback until 31 August
4.42% cash Isa
4.42% cash Isa
Trading 212: 0.57% fixed 12-month bonus
£20 off motoring
£20 off motoring
This is Money Motoring Club voucher
Investing Isa offer
Investing Isa offer
1% back (max £200) when adding £5,000+
No fees on 30 funds
No fees on 30 funds
Potentially zero-fee investing in an Isa or Sipp
Affiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence. Terms and conditions apply on all offers.
