Santander adds 18 month interest free for purchases to 123 cashback credit card

ï Santander 123 credit card now offers 18 months interest free on purchases

ï Significant APR cut; down to 12.7% (ex-annual fee) to reduce cost of borrowing

ï In addition to the 1%, 2% and 3% cashback, all for an unchanged monthly fee of £2 

ï Suitable for every day spending and a competitive shorter term borrowing option for larger purchases

Santander has added 18 months interest free on purchases to its award winning Santander 123 credit card, and cut the APR to 16.5% from 22.8% including the annual fee, or 12.7% from 18.9% ex-annual fee, providing customers with a very competitive shorter term borrowing option for larger purchases.

Cardholders can now spread the cost of large purchases such as holidays and home improvements, and benefit from a competitive interest rate once the interest free period ends if they have not paid off the balance in full. 

In addition, they can continue to obtain great value on all purchases as the Santander 123 credit card already provides 1% cashback on purchases at all major supermarkets, 2% cashback at all major department stores, and 3% cashback at all major petrol stations and on national rail and Transport for London travel1.

The annual fee is waived for the first year for new cardholders who also hold a Santander 123 current account1 and the 123 credit card now has contactless technology, making it easier and quicker to pay for items that cost less than £20. 

Reza Attar-Zadeh, Head of Retail Products, Santander UK, said: ìWith one of the longest 0% interest offers on purchases, a new low APR and up to 3% cashback on purchases, the Santander 123 credit card is ideally suited to every day spending, and a competitive shorter term borrowing option for larger purchases.î

He added: ìWe aim to make our service and products straightforward, easy to use and deliver great value for customers and their families and this is another great example of this commitment.î

Customers also become part of the 123 World proposition and have access to the associated benefits such as exclusive savings rates and discounted insurance premiums.

Santanderís latest credit card move follows hot on the heels of the launch of three new products in January this year:

ï The Long Term Balance Transfer card with 0 per cent on balance transfers for 29 months (3percent BT fee)  

ï Purchase card with 0 per cent on purchases for 18 months for non Santander 123  customers 

ï Low Balance Transfer fee card with 0 per cent on balance transfers for 17 months (0.9 percent BT fee)