Cash point

Santander is shaking up the business banking market with the launch of a new current account for small firms.

The 123 Business Current Account pays cashback on turnover and the amount will increase as the business grows – up to a maximum reward of £300 per year.

The rate of cashback is tiered and is paid annually on annual credit turnover from £10,000.

An annual credit turnover of up to £200,000 will earn 1% cashback, up to £100 per year. Annual credit turnover over £200,000 gets 2%, up to £200 per year, and 3% will be paid on credit turnover over £300,000.

Businesses with smaller turnover will need to ensure the numbers add up as the account has a £12.50 monthly fee.

The fee is being reduced to £5 a month for the first 12 months for established businesses that switch their current account using the current account switching service, or for start-ups in their first year of trading that open their first current account with the bank.

There are other benefits including a fee-free monthly cash deposit limit of £1,000 for money paid in at Santander and Post Office branches, and unlimited deposits via Santander’s network of ATMs.

Plus there will be offers on savings and small biz loans.

The new account is available to UK SMEs with up to two directors, owners, shareholders or partners.