The competition for current account customers in Britain has intensified dramatically, with banks now offering cash incentives of up to £200 and additional perks that could push total rewards beyond £500.
The Santander Deal That Beats The Competition
A fresh offer from Santander has positioned itself ahead of many rivals, potentially netting savers up to £524 in total rewards even after accounting for monthly fees. This aggressive move comes as lenders compete fiercely to attract new customers in the run-up to Christmas, a time when households are particularly keen to maximise their finances amid persistent inflation and rising living costs.
Under Santander's terms, new customers who switch to one of its main current accounts using the official Current Account Switch Service (CASS) will receive a £200 cash bonus. To qualify, they must pay in at least £1,500 and establish two active direct debits within 60 days. The cash payment lands in the account within one month of meeting these conditions.
How to Maximise Your Rewards
Savers can select from several Santander accounts, including the Everyday, Edge, Edge Up, Edge Explorer, or Private (v2). Those opting for the Santander Edge account, which carries a £3 monthly fee, can earn £10 monthly cashback on household bills. They also gain access to the linked Edge Saver, which pays a market-leading 6% interest on balances up to £4,000.
A customer fully utilising this savings account could earn £240 in interest over a year, plus £120 in cashback on bills, on top of the £200 switching bonus. This creates a gross total of £560. After deducting the £36 annual account fee, the net gain amounts to £524.
Kate Steere, a finance expert at the comparison site Finder, commented that this new offer "blows the competition out of the water."
How Other Banks Are Competing
The switching market is crowded with attractive deals. Nationwide and First Direct are currently offering £175 switching bonuses. Lloyds Bank matches Santander's £200 upfront offer.
TSB, NatWest, and Barclays also have cash rewards, though some target higher earners or involve more complex conditions.
- Barclays offers the largest potential payout at £400, but this is exclusively for Premier customers who earn at least £75,000 annually or hold £100,000 in savings or investments.
- TSB provides £150 for switching to its Spend & Save account, with an opportunity to earn up to £60 extra cashback through regular debit card use, bringing the potential total to £210.
- Lloyds Bank's Club Lloyds customers receive £200 plus a choice of annual rewards like six cinema tickets, a 12-month Disney+ subscription, or a magazine. They also get 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.
- Nationwide pays £175 and offers 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 monthly, set up two direct debits, and log into their mobile app.
Expert Advice for Potential Switchers
Financial analyst Rachel Springall of Moneyfactscompare.co.uk advised caution, stating: "An upfront cash injection is a great sweetener, but customers should only switch if the new account genuinely offers better value for their lifestyle."
The switching process itself is designed to be hassle-free. The official Current Account Switch Service automatically transfers all payments, standing orders, and direct debits to the new provider.
James Blower from The Savings Guru reassured potential switchers: "Once you've chosen your new banking provider, they'll handle the entire process – you don't have to lift a finger."
