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Santander cashback account could net customers £400 in a yr – but there is a catch

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Santander has launched a recent current account that would offer switchers almost £400 in cashback and interest throughout the first yr. 

The bank has unveiled its recent Santander Edge account alongside an exclusive easy-access linked savings account.

The present account is offering cashback on each debit card spending and direct debits, with as much as £20 per 30 days available, although there may be a £3 monthly account charge. 

Santander has unveiled Santander Edge, a recent current account and exclusive easy-access linked savings deal, which offers as much as £400 cashback

Meanwhile its linked savings account is offering customers 4 per cent interest on balances as much as £4,000.

Someone maintaining the utmost balance on this account will earn £13.10 every month.

It’s value noting that the 4 per cent rate of interest features a 0.5 per cent bonus rate for the primary 12 months from opening.

The brand new checking account is effectively replacing Santander’s 1|2|3 Lite current account, which has been faraway from sale today. 

Nevertheless, existing 1|2|3 Lite customers can proceed to make use of their account as usual. 

There shall be no impact on the favored 1|2|3 Current Account or some other Santander current account. 

The brand new Santander Edge account and exclusive Edge saver might be opened either in branch or online. 

>> Check the perfect savings rates using That is Money’s independent tables 

How the Santander Edge cashback scheme works

There’s 1 per cent cashback on essential grocery shopping and transport-based debit card spending. That is capped at £10 a month.

There’s an additional 1 per cent cashback on household bills paid via direct debit covering council tax, gas and electricity, mobile, landline, broadband and paid-for TV packages. Once more, that is capped at £10 a month.

To earn the £10 cashback, customers might want to spend £1,000 a month in each category.

The £3 monthly charge is unavoidable so potential joiners may have to factor this in.

Categories: The cashback on Santander Edge is limited to transport, groceries and household bills and capped at £20 a month

Categories: The cashback on Santander Edge is proscribed to move, groceries and household bills and capped at £20 a month

With a purpose to profit, this account will subsequently must be used as a important checking account. Customers can be smart to examine their monthly outgoings to examine what cashback they’ll likely be on target to receive. 

To be eligible for the Santander Edge current account, customers must have a minimum of £500 credited into their account every month and at the very least two energetic direct debits.  

Enrique Alvarez, chief customer officer at Santander UK said: ‘We’re excited to have the ability to unveil Santander Edge, designed around what we all know our customers want from their bank. 

‘We have created a recent account to assist customers profit from their money today and save for a greater tomorrow. 

‘Constructing on our concentrate on cashback, we shall be rewarding them for his or her essential spending, whether that is the weekly supermarket shop or travelling to work, and their household bills – particularly relevant given current pressures. 

‘The exclusive saver also provides a preferential rate for people trying to earn interest on their easy-access savings. 

‘Added to this, we have enhanced our app, with more in-app advantages being rolled out over the approaching months.’

How does it compare?

Santander is not the only bank with an honest cashback deal in the mean time. 

Those specifically on the lookout for cashback options might prefer the fee free digital bank, Chase, a part of US giant JP Morgan.

Perhaps most notably, Chase is offering 1 per cent cashback on all spending for the primary 12 months.

That is more generous than most cashback bank cards – albeit just for 12 months and with certain exceptions.

It implies that someone spending £24,000 on the cardboard of their first yr could receive up £240 in cashback.

This is identical amount of expenditure that will be required on Santander’s recent account, nevertheless without the category constraints or the £3 monthly charge.

Do your sums: People weighing up Santander's latest offer may find that other deals make financial sense

Do your sums: People weighing up Santander’s latest offer may find that other deals make financial sense

An alternative choice for individuals who are tempted by Santander’s offer is to contemplate a few of the generous switching offers currently available. 

For instance, HSBC and Nationwide are each offering money incentives to recent current account customers, offering them a £200 bonus for switching.

Those choosing the HSBC Advance account will just must accomplish that using the Current Account Switch Service (CASS) and arrange at the very least two direct debits or standing orders.

Joiners may also must deposit at the very least £1,500 into the brand new account inside 60 days of opening it.


As for Nationwide’s offer, customers must complete a full switch using CASS and a minimum of two energetic direct debits should be transferred to the brand new account. 

In addition to the £200 freebie, each providers are also offering their customers access to some exclusive savings deals, just like Santander.

HSBC’s Online Bonus Saver account is basically an easy-access deal paying 3 per cent on balances as much as £10,000, exclusive to HSBC banking customers.

Someone depositing £10,000 in HSBC’s account could expect to earn £300 in interest after one yr, though the rate of interest might be modified again in the long run.

The downside is the incontrovertible fact that the three per cent rate only applies for any month wherein no withdrawals are made. During a month wherein a withdrawal is made or the account is closed, savers will only earn 0.5 per cent.  

Nationwide offers in credit interest of 5 per cent on balances as much as £1,500 held throughout the Nationwide Flex account enabling recent joiners to secure as much as £75 in the primary yr from interest.

Old and new: How Santander's new Edge current account compares to the 1|2|3 Lite account

Old and recent: How Santander’s recent Edge current account compares to the 1|2|3 Lite account

THIS IS MONEY’S FIVE OF THE BEST CURRENT ACCOUNTS

Chase Bank can pay £1% cashback on spending for the primary 12 months. Customers also get access to an easy-access linked savings account paying 1.5% on balances as much as £250,000. The account is totally free to establish and is entirely app based. Also no charges when using the cardboard abroad.

Lloyds Bank

The Club Lloyds account offers £150 free money once you switch. It also pays 0.6% on balances as much as £4,000, and 1.5% on £4,000 – £5,000. There’s a £3 monthly account fee to pay. But that is waived every month that you simply pay in £1,500 or more.

Natwest

HSBC’s Advance Account pays £200 once you switch. You only need to establish two direct debits and deposit £1,500 within the account inside 60 days of opening it.

Santander

First Direct will give newcomers £175 after they switch their account. It also offers a £250 interest-free overdraft. Customers must pay in at the very least £1,000 inside three months of opening the account.

Nationwide

Nationwide’s FlexDirect account comes with as much as £200 money incentive for brand spanking new and existing customers. Plus 5% interest on as much as £1,500 – the very best rate of interest on any current account – in case you pay in at the very least £1,000 every month, plus a fee-free overdraft. Each the latter perks last for a yr.

Barclays

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