The battle for your current account shows no signs of slowing down as another bank has launched a cash switch offer – and this one could be the best one yet.
Santander will now give you £200 in cash to move your main account to the bank, which is immediately one of the biggest offers on the market. But the real value comes if you’re able to sign up for one of its paid accounts and have some savings, which could net you £524 altogether even after fees.
The likes of Nationwide and first direct have £175 switch offers and Lloyds offer £200, giving consumers plenty of choice for where to bank. That’s especially useful if they have changed banks or building societies previously, as most will not pay out twice to the same customer for these switches.
Barclays, meanwhile, have an even bigger potential offer – but it’s more aimed at those with higher net worth given you’d need £100,000 in an ISA for the full reward.
To claim the maximum of more than £500 from Santander, however, you can have a much smaller pot: £4,000 in savings.
Breaking down the deal in its entirety, everyone can get the initial £200 simply for switching using the CASS service. That’s as long as you haven’t had the switch offer from Santander previously, or if you had a current account with the bank already in 2025.
Once your switch is completed and includes at least two direct debits, you have to pay £1,500 into the account within 60 days, like sending your salary there. That money does not need to remain there, it just needs to go in initially.
From there, it will depend on which of the four available accounts you choose. The Everyday account is free and has no further perks, while more expensive options are £5 and £17 a month and carry their own perks and bonuses.
But for the £3 a month option with the Edge current account, the benefits include £10 cashback on household bills monthly and access to the Santander Edge saver account – which offers an unusually higher rate of interest on up to £4,000 savings.
Get a free fractional share worth up to £100.
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Get a free fractional share worth up to £100.
Capital at risk.
Terms and conditions apply.
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That 6 per cent rate is variable, but is far higher than the best easy access savings accounts on the market. If you max it out once opened then across the year at that rate you’d earn £240 in interest.
Add that £240 to the maximum £120 cashback on bills and the £200 switch bonus, and it’s £560 all told. Subtract the monthly fee which costs £36 for the year and it’s £524 which could be very achievable for many households – and even if you don’t max out on the savings you’ll still benefit more than with rates elsewhere.
One minor downside to Santander’s current offerings is that their best regular saver rate of 5 per cent doesn’t stack up with the best out there offering 7 per cent or more – but there’s nothing at all stopping you opening that type of account elsewhere.
As ever, it’s incredibly important to make sure the terms of any account suit your needs and money lifestyle requirements, regardless of how much ‘free cash’ is on offer.
Assessing the deal, Kate Steere, money expert at personal finance comparison site Finder, said: “Santander’s new £200 switching deal blows the competition out of the water when you look at what you can earn over the course of the year.
“Finder research shows the average Brit last switched bank accounts six years ago – but with offers like this, it’s well worth comparing what’s out there. Don’t be afraid to make the move; loyalty rarely pays in banking.”
