Santander major change to current account service ‘within weeks’ | Personal Finance | Finance

Santander customers are bracing for a significant shift in their banking services come next month.

The banking giant has announced its intention to withdraw the 123 Lite current account from its offerings starting August 21. This account, known for providing up to 3% cashback on household bills for a modest £2 monthly fee, will no longer be available.

Consequently, clients who are currently using the 123 Lite account will be transitioned to an Everyday Current Account. Although this changeover should not majorly affect day-to-day banking activities, those who regularly benefited from the cashback feature will miss out on these perks with the new account.

However, they will also be exempt from paying any fees associated with it.

Despite the fact that the Lite account has been closed to new applicants since last year, it is believed that thousands of customers continue to actively use it. For some, the account’s benefits have translated into savings of up to £15 per month, especially when covering expenses like energy bills and council tax.

A representative from Santander explained: “Following a review of our 123 Lite Current Account, which was last on sale to new customers in November 2022, and to simplify our product range, we have decided that now is the right time to withdraw the account.”

Santander closing branches

Santander is set to close nine branches across the UK, a move that comes hot on the heels of the bank’s decision to axe its 123 Lite account. A spokesperson for Santander remarked: “As a business, we must move with customers and balance our investment across all the places where we interact with customers, to deliver the very best for them now and in the future.”

The spokesperson further noted: “Closing a branch is always a very difficult decision, and we spend a great deal of time assessing where and when we do this and how to minimise the impact it may have on our customers.”

The spokesperson further noted: “Closing a branch is always a very difficult decision, and we spend a great deal of time assessing where and when we do this and how to minimise the impact it may have on our customers.”