Here are the key features of Santander's 123 current account: Fee. Are these payments subject to … How are these handled as far as tax is concerned? Santander 123. www.santander.co.uk. From 5 May 2020, the interest rate on the bank’s popular 123 account will be cut from 1.5% to 1%, on balances up to £20,000. 20 October 2020 at 11:52AM in Budgeting & Bank Accounts. Cashback. As BarbaraofSeville points out, you get a better rate on the regular saver. I also get cash back payments for direct debit payments. Anyone who got the card after this date hoping to benefit from cash back therefore needed to spend a monthly … The bank will pay 1% cashback to new or existing 123 customers who have a Santander or Abbey for Intermediaries (AFI) mortgage. I have a 123 £5 a month account. Registered Number 2294747. Santander has slashed the perks on its flagship current account, a change that will cost its four million account holders up to £100 a year. It costs £2 a month, £24 a year. Registered in England and Wales. The Santander 123 Current Account lets you earn up to 3% cashback on specific household bills, but cashback was capped at £5 per tier from May last year, meaning a maximum benefit of £15 a month. I also have a Santander mortgage. 1 0% introductory Annual Percentage Rate (APR) for 12 billing cycles on Balance Transfers made within 90 days of opening your account and 0% Introductory APR for 12 billing cycles on Purchases. I normally make about £8 a month, including interest as well as the cashback from direct debits. The new 123 current account from Santander allows you to earn cashback on your council tax, energy bills and mobile phone bills! 10 replies 416 views RobM99 Forumite. There is no mention of any tax payments. Registered Office: 2 Triton Square, Regent's Place, London, NW1 3AN, United Kingdom. Meanwhile, previously unlimited cashback offers will be capped at £15 a month. If you still want the cashback you can downgrade to 123 Lite, but you need to make sure you get at least £2/month cashback to break even with the fee. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Santander UK plc. Santander revamps its 123 current account to offer cashback on mortgage repayments for Santander mortgages. In January 2016, the fee for holding a Santander 123 cashback credit card increased, from £24 annually to £3 monthly - equivalent to a £36 annual charge. Looking at my Santander 123 accounts, the net interest payments and associated tax payments are clear. Holders of Santander's 123 current account can now enjoy cashback on mortgage repayments made by direct debit.. 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