Spotlight On: Santander's 1-2-3 account

The deal

Santander is offering cashback when you pay household bills through its new 123 Current Account.

Good points

It pays 1 per cent cashback on water and council tax, 2 per cent on electricity and gas, and 3 per cent on home phone, broadband and TV packages. There's also interest on credit balances above £1,000.

Bad points

It has a monthly £2 fee which eats into the rewards, and the interest paid is a paltry 1 per cent on £1,000 plus, rising to 3 per cent on £3,000or more.

Conclusion

It's interesting, but there are decent deals already out there. Halifax Reward account, for instance, offers a flat £5 a month. That could work out more than you could get through cashback and interest with Santander's deal. But it's a gimmick worth exploring.