Switching bank account could help you save up to £200 off energy bills - here’s how

Santander is now offering households cashback on their energy bills and extra money if they switch accounts.

The bank is giving out free cash to anyone who opens a 123, 123 Lite, Select or Private current accounts.

Customers will get 4% cashback, which has doubled from 2%, on their gas and electricity bills paid by direct debit in September and October.

It comes as experts predict that energy bills could rise to £3,358 from October and £3,616 from January.

What is Santander offering?

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.

It is the only UK bank 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.

Santander is also offering a switching bonus of £160 for new and existing customers of the bank who open one of the accounts.

Hetal Parmar, head of banking and savings at Santander, said the offers are an "added boost, putting more money in customer’s pockets".

How much money could I earn from these offers?

Customers could earn £40 cashback over winter, for the six months from September to February - that’s £10 for September and October and £20 in total with the larger cashback.

You would also 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 to get the cash?

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 be eligible.

To be eligible for cashback, customers must be over 18 and pay in at least £500 per month.

You also must have at least two active direct debits.

Other terms can apply so make sure to check these first so you get the cash.

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 Switch Service.

How to switch banks

The Current Account Switch Service can help you to switch your current account.