A MAJOR bank is offering households cashback on their energy bills and extra money if they switch account.
Santander is giving out free cash to anyone who opens a 123, 123 Lite, Select or Private current accounts.
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Customers will get 4% cashback, which has doubled from 2%, on their gas and electricity bills paid by direct debit in September and October.
The bank has also raised the monthly cap – the maximum cashback amount you can get – from £5 to £10 per month for the two month period.
Santander is the only bank in the UK to offer customers with 123 current accounts ongoing cashback on household bills.
This includes 1% on Council Tax bills, mobile phone, broadband and any Santander mortgage and 3% on water bills – both are capped at £5.
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It comes as experts predict that energy bills could rise to £3,358 from October and £3,616 from January.
Meanwhile, Santander is also offering a switching bonus of £160 for new and existing customers of Santander who open one of the accounts.
Hetal Parmar, head of banking and savings at Santander, said the offers is an “added boost, putting more money in customer’s pockets”.
How much money could I get off my energy bills?
With energy bills set to rocket, leaving many looking for ways to cover the extra cost.
Customers could earn £40 cashback over winter, for the six months from September to February.
That’s £10 for September and October, so £20 in total with the larger cashback.
And then you’d still get up to £5 every month, so worth £20 over the following four months.
But it’s important to remember that this is the maximum cash you could receive – the actual figure will be based on your household energy bill.
Alongside the £160 switching bonus, households could get a cash boost of £200.
There is a £4 monthly fee to maintain the account, which is paid automatically each month.
This is something that you should consider before deciding to take out an account.
Can I switch to Santander and get cashback on my energy bills?
For new customers, it’s simple to open a new bank account using the Current Account Switch Service.
Existing customers can switch in branch and new customers can choose to switch either in branch or online.
But there are certain conditions you will have to meet to qualify for the energy bill cashback.
Anyone who has benefited from a previous Santander switch offer will not eligible.
To be eligible for cashback, customers must be over 18 and pay in at least £500 per month and have at least two active direct debits.
Other terms can apply so check these first so you get the cash.
You can also check out out top tips for switching current accounts – from a serial switcher who made £400 last year.
To get the switching bonus, you’ll need to pay in at least £1,000 a month and have two direct debits set up, plus use the Current Account Switching Service.
How can I switch banks?
The Current Account Switch Service does most of the legwork for you, so you don’t have to remember to move direct debits over when you move.
All you need to do is apply for the new account you want and the new bank will let your existing provider know you’re moving.
Make sure you double check all the terms and conditions attached to the account first.
If you have an overdraft, you should find out whether your new bank will take it on before switching.
While the switching service makes things easier, you’ll still have to manually update some important things.
While your salary should get redirected to your new account, it’s worth letting your employer know you new payment details just in case.
Changing account is a good time to cancel standing orders that you no longer need.
You should also download a copy of your statements and transaction history, as this information will be wiped when your old account is closed.
You can choose a switch date to suit you – just make sure you allow seven working days for the switch to take place, and that your chosen date isn’t a Saturday, Sunday or Bank Holiday.
Once you’ve fulfilled the terms and conditions of the new bank, you could switch again to earn even more money – although some accounts require you to be a customer for a set period to get the free cash.
What help can I get to help me with my energy bills?
Unfortunately, there isn’t a lot you can do to escape the rising energy prices.
As the cost of living and inflation rises, everyone is going to be affected.
However, help is available through various schemes and funds.
British Gas have a hardship fund which may mean you could loan up to £1,500 free cash towards your bills.
If you have a pre-payment meter, you could receive a one off fuel voucher. You’ll need to contact your supplier directly to see what’s being offered and whether you could be eligible.
The Household Support Fund will also help support families during the cost of living crisis, which provides you with cash to pay your bills or food costs.
Former chancellor Rishi Sunak revealed earlier this year that every household would receive a £400 discount towards their energy bills.
Pensioners are also able to receive an extra £300 in November or December.
If you’re struggling with your bills these organisations are here to help:
The RAC has also warned that petrol retailers are ‘cutting prices too slowly’ despite falling by 9p in July.
Inflation has affected by supermarket prices with many expressing their shock that Tesco’s olive oil price has hit £7.
This savvy saver tells us how she saves £6,000 a year on her bills – here’s how you can too.
