Santander recently launched a new current account offering not only high interest rates but with cashback on many consumer purchases, industry experts recently reported.
The Spain-based provider of personal and business bank accounts‘ new 123 Current Account boasts cashback discounts on many different types of direct debit payments, offering 1 per cent on council tax payments and water bills, 2 per cent on gas and electricity utility bills, and 3 per cent on paid TV, broadband, mobile, and phone packages. This can result in significant savings for many customers with expensive digital TV / broadband packages and iPhone 4S contracts, experts say.
Those responsible for paying household bills can also reap rather obvious benefits as well, as a large number of consumers are still coping with last year’s two significant utility bill increases, even in the face of some energy firms retreating on their pricing slightly. According to official figures, the annual standard tariff electric and gas bill works out to around £1,127 on average, resulting in more than £22 in cashback for consumers.
With the recent announcement that 43 per cent of households in the UK could see an increase to their bills, the council tax payment small cashback measure is larger than one would think, especially with the average D band home poised to increase to £1,443.79. Santander current account holders could see £14.44 per annum saved in this situation.
The cashback offer is just one half of Santander’s new offering, as it also carries a three-stage interest rate scheme as well. If customers keep at least £1,000 in the account, they will earn 1 per cent interest, while those with £2,000 will earn 2 per cent and those with £3,000 or more (up to a limit of £20,000) will reap the benefits of 3 per cent interest.