Account name123 Current Account
Cashback of 1% on communications & council tax bills and Santander mortgage payments up to maximum £1K per month capped at £5, 2% on gas & electricity bills and Santander home insurance and life protection premiums paid by DD from this account capped at £5, 3% on water bills.
Account fee£4 per month
Interest (AER)1.75%
ATM withdrawal limit£300
Debit networkVisa
Card typeCash / Debit
Minimum eligibility age18 Years
Mininum operating balance£0.01
Minimum opening balance£0.01
Direct debits
Current account switch guarantee
Cheque Book

Santander UK is a wholly-owned subsidiary of global bank Banco Santander. It made its entrance into the UK market back in 2004 after first acquiring Abbey National and later Bradford & Bingley and Alliance & Leicester.

The bank offers a number of different current accounts, with its popular 123 current account offering a range of benefits for consumers.

What is the Santander 123 current account?

The Santander 123 current account is an everyday bank account that also lets users earn monthly interest and cashback on selected household bills. In return, there’s a £4 monthly account fee to pay. The account also offers an arranged overdraft and can be opened as a joint or single account.

You can manage your account 24/7 via online and mobile banking, including email and text alerts, and get personalised spend insights via the app. Alternatively, you can manage the account in branch or over the phone.

How does it work?

The Santander 123 current account offers the following key features:

  • Monthly interest. Earn interest of 1% AER/gross (variable) on balances up to £20,000.
  • Cashback. Earn up to 3% cashback on selected household bills, capped at £5 per month in each category. You can earn 1% on council tax bills, mobile and home phone bills, broadband and pay-TV packages, and Santander monthly mortgage payments. You will also get 2% on gas and electricity bills and Santander home and life insurance premiums, as well as 3% on water bills.
  • Fee-free cash withdrawals abroad. Use your debit card to make withdrawals at Santander cash machines abroad for free.
  • Santander Boosts. Get cashback, vouchers, prize draws and other offers personalised to you.
  • Arranged overdraft. If you’re switching from another bank to Santander, no interest is charged on overdrafts for the first 4 months. After that (and for anyone else), interest is charged at a rate of 39.94% EAR representative.
  • 123 World Offers. This programme gives you access to preferential deals.

Who is the Santander 123 current account for?

The Santander 123 current account is for anyone looking to get a little more from their bank account through cashback, interest and other rewards, provided they are happy to pay a monthly fee.

To be eligible for the account, you will need to be at least 18 years old and permanently live in the UK. To qualify for cashback and interest, you must also pay in at least £500 a month and have at least 2 active direct debits on the account.

What are the benefits?

One of the biggest benefits of the Santander 123 current account is that alongside carrying out your everyday banking transactions, you’ll also be able to earn interest on your balance and receive cashback just for paying your household bills. The account also offers a 4-month interest-free overdraft for those switching across from another provider.

You will also have access to Santander Boosts, a rewards programme which offers cashback, vouchers, offers and prize draws. You can sign up for Santander Boosts online or on the app.

How to apply

You can apply for the Santander 123 current account online in just 10 minutes. You’ll need to provide a few details about yourself, your contact details and your employment details.

Alternatively, you can make an appointment at your local Santander branch to complete your application.

Pros and cons of the Santander 123 current account


  • Earn up to 3% cashback on household bills
  • Earn interest on your balance
  • 4-month interest-free overdraft for new customers
  • Quick to open account online or in branch
  • Fee-free withdrawals abroad (at Santander ATMs)
  • Cashback and rewards with Santander Boosts.


  • £4 monthly account fee
  • Interest charged on overdrafts after first 4 months
  • You’ll need to meet certain criteria to qualify for cashback and interest

Our verdict

Overall, if you’re looking for a current account that gives a little extra, and you’re happy to pay a fee of £4 a month, the Santander 123 current account has a lot going for it. As well as paying interest on account balances, you’ll also receive cashback simply for paying certain household bills and get access to Santander Boosts. New customers will also benefit from a 4-month interest-free overdraft, which could help you clear your overdraft once and for all and get back in the black.

Alternatively, if you’d like to benefit from the same rewards but also receive a more personal banking service, you could look at the Santander Select account. This pays the same rate of cashback and monthly interest, and offers fee-free withdrawals at Santander cash machines abroad, an interest-free overdraft of up to £500 and 24/7 telephone banking. You’ll need to meet strict eligibility criteria though, and there’s still a £4 monthly fee. Visit Santander’s website to apply or compare other Santander accounts here.

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