Santander 123 Cashback on energy @ 2%

kev2009

Thanks Gerry1 but I already got mine for Jan and it shows just 1 DD at 2% instead of 2 so i'm going to take a look though the account tomorrow and see when it stopped or if indeed it ever started

Thanks

Kev

Neil_Jones

There is a mechanism for cashback and its not necessarily the company, but its whether they (or whichever company takes the payments) fall into the appropriate international categorisations.

So in other words this would catch the likes of Outfox (which itself doesn't appear on the list) but when I was with them a couple of years ago I got cashback on it through 123, and that was because it's classed as FISCHER ENERGY, which does attract 2% cashback.

Gulf seems to be owned by the American company of the same name so it may be an international trading arm, and Neon Reef seems to be Utility Point in different colours.

kev2009

thanks all, going to go through my statement now (just downloaded it) and see if each category works out correctly and if it matches what I've been paid etc.

Kev

kev2009

ok sorted out the cashback issue so thats all good now.

Been looking at the 123 Lite account, looks appealing, just the issue of capped at £5 cashback per tier is a pain. Going to continue to look but I think i'll prob change mine to a 123 lite come May as no real advantage to the account now. Going to look for an alternative for the cash in the account as 1% is pretty low.

Kev

Neil_Jones

kev2009 wrote: »

ok sorted out the cashback issue so thats all good now.

Been looking at the 123 Lite account, looks appealing, just the issue of capped at £5 cashback per tier is a pain. Going to continue to look but I think i'll prob change mine to a 123 lite come May as no real advantage to the account now. Going to look for an alternative for the cash in the account as 1% is pretty low.

Kev

You'll get less than 1% as that is the gross rate, the net will be something like 0.7%. You're already effectively getting only getting about 1.2% as it is (the gross rate is 1.5% before fee) and there are easy access accounts that you can use (see the main site) that give you a clean 1.3% rate as it is. Why wait until May when you can beat it now?

SnowTiger

Gerry1 wrote: »

Grrr... both Neon Reef and Gulf Gas & Power UK are missing.

One of my previous energy suppliers wasn't on Santander's list.

I sent Santander an online message asking if I would receive 2% cashback on my electricity and gas bills from the supplier.

Santander sent me a letter confirmed I would. And I did.

kev2009

Neil_Jones wrote: »

You'll get less than 1% as that is the gross rate, the net will be something like 0.7%. You're already effectively getting only getting about 1.2% as it is (the gross rate is 1.5% before fee) and there are easy access accounts that you can use (see the main site) that give you a clean 1.3% rate as it is. Why wait until May when you can beat it now?

Hi Neil,

I'm getting the gross 1.5%. Last I knew, I can make upto 1k in interest before paying tax, correct? If so, i don't make more than £1k in interest per year.

Kev

Neil_Jones

kev2009 wrote: »

I'm getting the gross 1.5%. Last I knew, I can make upto 1k in interest before paying tax, correct? If so, i don't make more than £1k in interest per year.

Sorry, that wasn't what I was getting at but I can see why you thought that with the terms I used.

The advertised interest rate on Santander "regular" account is 1.5%. But you don't get paid 1.5%. That is the interest paid before deduction of the £5 a month fee.

What you actually get in terms of interest is closer to 1.2%. When the account changes in May you would be getting 1% before the fee. After the fee it is around 0.7/0.8%, and at that point its effectively generating sod all.

This is why I said you can get a better effective interest rate with Lite and an easy access account that currently pays 1.3%. It's nothing to do with "earning 1k in interest" and you wouldn't earn anywhere near that in the 123 account anyway on its own.

Hope this helps.

kev2009

Thanks @Neil Jones, I understand now, at the moment, the £5 fee I pay through the cash back on the 1%/2%/3% tears so the interest on the money in the account i do get 1.5% on as the £5 is paid for by the cash back But I do agree, moving to the lite account is what I think I will do.

What account would you recommend for getting 1.3%? I've never had a goldmans sachs account or Marcus account, which i believe pays 1.5% but need to check they are covered by FSCS if they collapse, which i doubt it but who knows in these times Other options such as Atom, Zenith bank, I've never heard of and am very weary.

I'm currently thinking of moving to a Santander lite, keep just enough in to pay my bills through, which a small amount extra to cover any occasional increase in prices etc and then moving money to a different account to earn more interest but still remain easy access.

Kev

martins_fan

I always wonder, would they let you increase your DD to say £1,000 per month and claim a refund every month in order to get £20 cash back per month. ( I know it’s capped at £5 soon but would the same argument apply at £250/m?)