Santander to close current account used by hundreds of thousands of customers
One high street bank has undergone a lot of changes recently. In the last few months alone, Santander has struck a £2.65 billion deal to acquire rival TSB, a move that would make it the UK's second-largest bank by personal current account balances and raise concerns over future job cuts and high street branch closures.
In a significant shake-up, the banking giant also declared plans to axe 95 branches which got underway in June, attributing the decision to a swerve in customer preference towards online banking over in-person services.
But there is one more change afoot. Santander is set to discontinue a favoured current account, leaving hundreds of thousands of customers affected next month. The banking giant is shutting down its 123 Lite current account.
This account provides up to three per cent cashback on household bills for a £2 monthly fee. The accounts will stop come August 21, 2025, meaning Scots are just over a month out from seeing the switch-out take place in real time.
Those impacted by the closure will be automatically transferred to Santander's Everyday Current Account.
A spokesperson told Birmingham Live: "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."
Customers have been sharing their reaction online. On Reddit, one said: "I figured this was coming given they haven't offered those accounts to new customers for a while now. Wondering for myself if it's worth opening a new Edge current account to keep getting cashback or just cashing in and getting a switch bonus from another bank?"
Another customer expressed their reasons for staying with Santander, writing: "The only things keeping me were the 123 cashback and the fact I have a branch nearby. 123 being pulled and local branch being closed."
They concluded: "Time to take advantage of a switch offer."
Meanwhile, a third customer evaluated the new offering and found it lacking, reasoning: "I ran the estimate to see what the edge account would give me. It was about £1 a month, so I don't think I'll bother."
Santander states that if you wish to continue using your account following the changes, no action is required on your part. Nevertheless, you do have a couple of alternative choices available.
You may be eligible to move to a different Santander account.
If you decide to transfer, you can retain your current account details including the account number and debit card.
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"We're a member of the Current Account Switch Service, which offers a secure and easy way to switch your account to another bank in 7 working days," Santander explained.
"You can find more information through the CASS website."
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The Herald Scotland
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- The Herald Scotland
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