Competition in the current account market is intensifying as Santander launches a new account offering cashback on spending and a linked savings account with 4% interest. The Santander Edge account, which carries a £3 monthly fee, allows customers to earn up to £20 in cashback and £13.10 in interest per month.
The account provides 1% cashback on grocery shopping and transport debit card spending, capped at £10 per month, and a further 1% on household bills paid by direct debit, also capped at £10. The linked easy access saver pays 4% AER variable on balances up to £4,000, including a 0.5% bonus for the first 12 months.
Santander's move comes as rivals such as HSBC UK and Nationwide Building Society offer £200 cash incentives to switch accounts. Nationwide has been particularly aggressive in attracting switchers, leading to a clash between the two banking giants.
To be eligible for the Santander Edge account, customers must credit at least £500 per month and have two active direct debits. The account also includes free overseas ATM use and access to in-app budgeting tools, with a carbon footprint tracker and smart budgets due to launch later this year.
Enrique Alvarez, chief customer officer at Santander UK, said: “We’ve created a new account to help customers make the most of their money today and save for a better tomorrow.” Meanwhile, Rachel Springall of Moneyfacts.co.uk noted: “It’s exciting to see such a rewarding current account launched onto the market at a time where many consumers will be trying to make their money go further.”
