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Santander axes 1% cashback on spending – should you switch your account?
Edge customers will no longer get money back on travel and supermarket spending
Santander is scrapping one of the main perks of its Edge and Edge Up current accounts, with 1% cashback on debit card spending due to end in September.
The changes mean customers will no longer earn money back on supermarket shopping, fuel and travel. Although 1% cashback on household bills will remain.
Here, Which? explains what's changing, how the accounts compare and whether it's worth switching.
What's changing with Santander Edge accounts?
From 9 September 2025, Santander will halve the amount of cashback customers can earn from its Edge and Edge Up accounts.
The bank is removing 1% cashback on debit card spending, which currently applies to everyday purchases such as groceries, fuel and public transport.
After this date, customers will only earn cashback on household bills paid by direct debit, including council tax, energy, water, broadband and mobile.
For customers who earned the maximum cashback, the most you could get before the change was £20 a month (£240 a year) with the Edge account, or £30 a month (£360 a year) with Edge Up.
From 9 September, this will drop to £10 a month (£120 a year) on Edge and £15 a month (£180 a year) on Edge Up.
Here's how both the Edge and Edge Up accounts will change:
| Accounts | Monthly fee | Minimum pay in | Cashback earnt before 9 September | Cashback earnt after 9 September | Other perks |
|---|---|---|---|---|---|
| Santander Edge | £3 | £500 | 1% on bills and spending (up to £10 each per month) | 1% on household bills (up to £10 per month) | Fee-free spending abroad |
| Santander Edge Up | £5 | £1,500 | 1% on bills and spending (up to £15 each per month) | 1% on bills (up to £15 per month) | Fee-free spending abroad and 2.5% interest on balances up to £25,000 |
Travel and essential spending includes fuel, train and bus tickets, electric vehicle charging and purchases made at supermarkets. Eligible bills are council tax, gas and electricity, water and mobile phone, internet and television packages.
- Find out more: best bank accounts for cashback
Closure of 123 Lite account
Santander has also confirmed it will close its 123 Lite current account on 21 August, with customers moved to its Everyday current account, which doesn’t offer cashback.
The 123 Lite account, which pays up to 3% cashback on bills for a £2 monthly fee, has been unavailable to new customers since early 2024.
Santander says it will contact affected account holders ahead of the change and outline their options.
Why is Santander making these changes?
Santander told Which?: ‘We regularly review our products to ensure that we can continue to offer customers long-term value in view of wider market conditions. As a result, we have made the difficult decision to remove cashback on supermarket and travel debit card spend on our current accounts from 9 September 2025.
'Customers can continue to benefit from the existing features on the account, including cashback on household bills paid via direct debit and fee-free debit card spending abroad.'
If you have one of these accounts, Santander will write to you about the changes.
- Find out more: best bank and bank accounts 2025
Are Santander Edge accounts worth it?
With cashback now limited to household bills, the value of Santander’s Edge and Edge Up accounts depends on how much you typically spend — and how that compares with the monthly fee.
As an example, if you spend £1,000 a month on eligible bills, Santander’s calculator suggests you’d earn the following in cashback:
- The Edge account would earn £10 cashback, reduced to £7 after the £3 monthly fee.
- The Edge Up account would also earn £10 cashback, dropping to £5 once the £5 fee is taken into account.
If your bills are lower, your returns may be smaller, and other current accounts could offer better overall value.
That said, both accounts do include other features. Edge Up pays 2.5% AER interest on balances up to £25,000, and both accounts offer fee-free debit card spending abroad — which may still appeal to customers who travel regularly or hold a high balance.
- Find out more: best debit cards to travel abroad
How do the cashback accounts compare?
With Santander halving the amount of cashback you can receive, it’s worth considering whether you could get a better deal elsewhere.
Here's how the main options compare, ordered alphabetically:
| Account | Monthly fee | How cashback is earned | Maximum cashback you can earn per month | Maximum annual profit |
|---|---|---|---|---|
| Chase Current Account | £0 | 1% on debit card spending on everyday groceries, transport and fuel for first 12 months | £15 | £180 |
| Halifax Reward Current Account | £3 (free if you pay in £1,500 a month) | Spend £500 per month or keep £5,000 or above in your account, and pay in £1,500 each month and stay in credit | £5 | £24 |
| Nationwide FlexDirect Current Account | £0 | 1% on debit card spending for 12 months | £5 | £60 |
| NatWest Reward Account | £2 | Having two or more direct debits of at least £2 and logging onto the mobile app | £5 | £36 |
| RBS Reward Account | £2 | Having two or more direct debits of at least £2 and logging onto the mobile app | £36 | |
| Santander Edge Account | £3 | 1% on eligible bills | £10 | £84 |
| Santander Edge Up Account | £5 | 1% on eligible bills | £15 | £120 |
You could earn the most cashback with Santander Edge Up and Chase accounts, but both only pay 1% cashback based on what you spend or pay in eligible categories, and many customers won’t come close to earning the maximum.
Other accounts offer lower rewards, but these are guaranteed if you meet certain conditions, such as setting up direct debits or making regular debit card payments.
It's worth checking the criteria and considering how the account fits with your day-to-day spending.
- Find out more: best bank account switching deals 2025
Should you consider a cashback credit card?
If you're looking to earn more on your everyday spending, a cashback credit card could be worth considering — either alongside or instead of a cashback current account.
Using a cashback credit card for regular spending, combined with a current account that rewards bill payments or other activity, could help you maximise your returns. Just make sure to pay off your balance in full each month to avoid interest charges.
For example, Santander current account holders can apply for the Edge Credit Card, which pays 2% cashback on purchases, capped at £15 per month for the first 12 months. The card has a monthly fee of £3 per month and a representative APR of 29.8%.
You can compare options in our expert guide to best cashback and reward credit cards currently on the market.
