Santander axes popular current account - and replaces with new product
Santander has axed one of its popular current account products after ten years.
From today, the high street bank will not be offering customers its 123, Select, and Private current accounts.
However, its 123 Student and 123 Mini accounts will still be available.
In its place, Santander has launched a new current account - the Santander Edge Up - which offers cashback and other perks.
The new current account offers 1% cash back on up to £15 a month on selected monthly bills paid by direct debit.
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These essential bills include Council Tax, energy bills, mobile, and TV subscriptions.
It also offers 1% cashback - again up to £15 a month - on "essential spending" on debit card spending at supermarkets and on travel.
To get £30 monthly cashback, you would need to spend at least £1,500 a month on eligible spending and at least £1,500 on eligible monthly bills.
Customers will also earn 3.5% interest on balances up to £25,000 - Santander says this will allow people to earn up to £71.772 in interest.
To benefit from the cashback and interest, you must pay a minimum of £1,500 a month into the account and set up two direct debits.
Edge Up customers also have access to "Santander Boosts" which offers customers cashback, vouchers, discounts, prize draws, and giveaways.
Alongside all of this, you will also be given fee-free debit card purchases and cash withdrawals when abroad and fee-free international bank transfers.
However, there is a small catch - if you sign up for the new Edge Up account, you will have to pay a £5 monthly fee.
This isn't too dissimilar to the bank's 123 accounts which were originally launched in 2012 and had a fee of £4 a month.
If you would like to, you can sign up for the account online, over he phone, or in your local Santander branch.
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Existing Santander customers have a choice over whether they would like to keep their account or transfer to an Edge Up account.
Andrea Melville, director for personal current accounts and savings, Santander UK, said: "We know many people are experiencing financial pressures at the moment with the increased cost of the weekly food shop, high energy costs, and other bills going up.
"Our new Edge Up Current Account is all about making it easier for our customers to make the most of their everyday spending and help them make their finances stretch a little bit further."
Commenting on the new account, Rachel Springall, a finance expert from Moneyfactscompare.co.uk, said: “Overall, it’s a package that may suit customers who use their primary account for both their regular bills and daily spending, but it’s important they ensure they are earning enough off the account so they can cover the monthly account fee.
“As with any deal, benefits are great to have included so long as they are used, and customers must pay in a minimum of £1,500 a month and set up two direct debits to benefit from the cashback and credit interest offer.
“As with any deal, its vital bank customers compare this package to the wider market to ensure it meets their individual needs.”
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