A new deal from Santander outstrips many of its rivals
The battle for Britain’s current account customers has blown up with promises of cash payouts worth £200 and other perks than could add up to more than £500. A new deal from Santander outstrips many of its rivals and could net savers up to £524 in total rewards, even after account fees are deducted.
It comes amid a flurry of competition between lenders as they vie to attract customers ahead of Christmas, when households are keen to claw back every pound possible to cope with soaring bills and stubborn inflation.
Under the Santander offer, anyone switching to one of its main current accounts using the Current Account Switch Service (CASS) will get a £200 bonus – provided they pay in at least £1,500 and set up two active direct debits within 60 days. The cash is paid within a month of meeting those conditions.
Customers can choose from several accounts including the Everyday, Edge, Edge Up, Edge Explorer, or Private (v2). hose opting for the Santander Edge account – which costs £3 a month – can earn £10 monthly cashback on household bills and access the linked Edge Saver, paying a market-leading 6% interest on balances up to £4,000.
Someone making full use of the savings account could earn £240 in interest, plus £120 cashback on bills and the £200 switching bonus – a total of £560. After deducting the £36 annual account fee, the net gain would be £524. Finance expert Kate Steere of comparison site Finder said the new deal “blows the competition out of the water”.
By contrast, Nationwide and First Direct are currently offering £175 switching bonuses, while Lloyds pays £200. TSB, NatWest, and Barclays also have cash rewards for new customers – though some are targeted at higher earners or require more complex conditions.
Barclays has the biggest potential payout, at £400, but it is only available to Premier customers who earn at least £75,000 a year or hold £100,000 in savings or investments. TSB offers £150 for switching to its Spend & Save account, with the chance to earn up to £60 extra cashback for regular debit card use, taking the total to £210.
Lloyds Bank’s Club Lloyds customers can get £200 plus a choice of annual rewards such as six cinema tickets, a 12-month Disney+ subscription, or a magazine of their choice. They also gain access to a linked regular saver paying 6.25% interest.
First Direct gives newcomers £175, access to a 7% regular saver, and a £250 fee-free overdraft, while Nationwide pays £175 plus up to 5% in-credit interest on current account balances.
NatWest and Royal Bank of Scotland are offering £175 to switchers who pay in £1,250 a month, set up two direct debits, and log into their mobile app.
Financial analyst Rachel Springall of Moneyfactscompare.co.uk said: “An upfront cash injection is a great sweetener, but customers should only switch if the new account genuinely offers better value for their lifestyle.”
Switching is made simple by the official Current Account Switch Service, which automatically transfers all payments, standing orders and direct debits to the new bank.
James Blower of The Savings Guru said: “Once you’ve chosen your new banking provider, they’ll handle the entire process – you don’t have to lift a finger.”
