Paul Sanchez
Santander 123 account holders have access to a variety of benefits, including cashback on household bills, council tax, mobile, broadband, and Santander's own insurance and mortgage products. However, there is some debate over whether the account includes travel insurance. While some customers recall having basic travel insurance, others are unsure. Currently, Santander offers a 30% online discount on Santander Travel Insurance for Santander Select customers. Additionally, the bank has introduced a monthly fee for the 123 account, reduced the interest rate, and capped the cashback amount, leading some customers to consider switching to alternative accounts.
| Characteristics | Values |
|---|---|
| Insurance | Santander 123 account does not include insurance. However, Santander offers travel insurance and home insurance as separate products. |
| Cashback | Santander 123 account offers cashback on household bills, including water, council tax, mobile, broadband, and their own mortgage and insurance products. |
| Interest | The interest rate on the Santander 123 account has been reduced over time and is currently 1% up to £20,000. |
| Monthly Fee | The monthly fee for the Santander 123 account is £5. There is also a Santander 123 Lite account with a lower monthly fee of £1, but it does not offer credit interest. |
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What You'll Learn
Does the Santander 123 account include travel insurance?
Santander 123 account holders have access to a variety of benefits, including cashback on household bills, council tax, mobile, broadband, and Santander's own insurance and mortgage products. However, it is unclear whether the Santander 123 account includes travel insurance. While some customers recall having a Santander bank account with travel insurance, it may have been a different type of account, such as the Flex account.
The Santander 123 account has undergone changes over the years, with a reduction in interest rates and the introduction of a monthly fee. The account previously offered a high rate of interest on savings balances, but the benefits have been steadily watered down. The monthly fee was initially £2 and has since increased to £5, impacting the number of new customers choosing to open a Santander 123 account.
Santander has also launched a new 123 Lite account, which offers cashback benefits similar to the standard 123 account but does not provide credit interest. The 123 Lite account charges a lower monthly fee of £1.
While Santander offers travel insurance, it is not clear if this is included in the 123 account. Santander Travel Insurance is arranged, administered, and underwritten by Chubb European Group SE (CEG), and 123 account holders can benefit from a 30% online discount on this insurance.
Therefore, while the Santander 123 account offers various benefits, it is uncertain whether travel insurance is included. Customers seeking travel insurance coverage may need to consider other Santander accounts or purchase separate travel insurance policies.
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What cashback benefits does the Santander 123 account offer?
The Santander 123 Current Account offers a cashback program on household bills, which helps customers save money on their regular expenses. The account has a tiered cashback structure that rewards customers based on different bill categories.
The cashback rewards cover many household bills, including essential services like utilities, telecommunications, and local taxes. Customers can earn 1% cashback on council tax, mobile and home phone bills, broadband, and TV packages. The cashback on these categories is capped at £5 per month.
In addition to the above, customers can also earn 2% cashback on gas and electricity and Santander home insurance. This tier is also capped at £5 per month.
Furthermore, the Santander 123 Current Account offers 3% cashback on phone, broadband, mobile, and TV packages. This tier is also capped at £5 per month.
It is important to note that the Santander 123 Current Account has a monthly fee of £5, and there is a requirement to deposit a minimum of £500 per month to be eligible for cashback.
Santander also offers other accounts with cashback benefits, such as the Edge account, which provides 1% cashback on bills and debit card spending for a £3 monthly fee, and the Edge Up account, which offers more cashback and interest on balances for a £5 monthly fee.
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What are the fees associated with the Santander 123 account?
The Santander 123 account is no longer available to new applicants. However, as an existing account holder, you are required to pay in at least £500 every four months and there is no monthly fee.
Since 2012, Santander has steadily reduced the benefits of this account. They introduced a monthly fee that started at £2 and increased to £5. They also cut the interest rate in 2016 to 1.5%, and now to 1%. This means that to cover the £5 monthly fee, you need to maintain an average balance of £6,000 in your account.
Cashback is still on offer, but it has been capped at £15 a month maximum. The 123 account currently pays 1% cashback on water bills, council tax, and Santander mortgage payments, 2% on gas and electricity, and 3% on phone, broadband, mobile, and TV packages. From 5 May 2020, each of these three tiers is capped at £5.
If you are an existing Santander 123 account holder, it is worth reviewing if this account is still the best option for you.
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How does the Santander 123 account compare to other bank accounts?
The Santander 123 account is no longer available to new customers. However, existing customers can still benefit from cashback on some bills and Santander mortgages. The account has a higher monthly fee of £5, which means you need to maintain an average balance of £6,000 to cover the fee. The interest rate has been reduced to 1%, and the cashback is now capped at £15 per month.
The Santander 123 account can be compared to other bank accounts in terms of the benefits and features offered. Some alternative accounts include the Santander Edge, Edge Up, and 123 Lite. The Edge account offers cashback on monthly household bills and everyday spending, while the Edge Up account provides a higher interest rate of 3% and cashback on all bills at 1%. The 123 Lite account does not pay any interest but offers similar cashback benefits to the standard 123 account.
Other banks also offer packaged bank accounts with various features. For example, the Nationwide account offers worldwide travel insurance for a £13 fee, and the Halifax account has a £5 monthly reward. The Co-op Bank also offers a similar account with a £2.20 reward.
In terms of insurance, Santander offers a range of insurance products such as home insurance, life insurance, and travel insurance. However, it is unclear if the 123 account specifically includes travel insurance as part of its benefits. Some customers recall having basic travel insurance with their 123 account in the past, but Santander no longer mentions it in the account details.
Overall, when comparing the Santander 123 account to other bank accounts, it is important to consider the interest rates, cashback offers, fees, and additional benefits offered by each account to determine which option best suits your needs.
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What insurance products does Santander offer?
Santander offers a range of insurance products to its customers. These include:
Santander 123 Account
The Santander 123 Account offered cashback and interest and is now closed to new applicants. While there is no explicit mention of insurance, some customers have claimed that their bank account with Santander provided travel insurance. However, it is unclear whether this was a feature of the 123 Account or another Santander account.
Santander Select
Santander Select customers have access to a range of products, including a 30% online discount on Santander Travel Insurance, which is arranged, administered, and underwritten by Chubb European Group SE (CEG).
Life Insurance
Santander offers life insurance policies with £150 cashback for Select customers. The cover is provided by Aviva.
Home Insurance
Santander provides home insurance, administered and underwritten by Aviva Insurance Limited.
Business Insurance
Santander US offers business insurance as part of its financial services for businesses, which include business financing and investment services.
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Frequently asked questions
The Santander 123 account does not include insurance, but it does offer cashback on Santander home insurance.
Santander offers travel insurance and home insurance.
The Santander 123 account does not include travel insurance. However, as a Santander Select customer, you can access Santander Travel Insurance at a 30% online discount.
The Santander 123 account offers cashback on household bills, including water, council tax, mobile, broadband, and Santander mortgage and insurance products. It also pays interest on savings balances.
