- Santander has launched a cash bonus for those switching their current accounts
- But all three of the accounts offered in the switching deal come with fees
Santander has launched a £175 current account switching bonus, with the offer open to new and existing Santander customers.
From today, customers that switch to a Santander Edge current account, an Edge Up account or a private current account will be eligible for a £175 bonus.
However, all three of these accounts come with monthly fees which will eat into the bonus cash.
Cash bonus: Switchers can get their hands on £175 by choosing one of three Santander current accounts – but they all charge monthly fees
Santander charges £3 per month for an Edge account, and £5 monthly for Edge Up and Private accounts.
Customers wanting to get the £175 bonus must use the Current Account Switch Service, and not have received a similar bonus from Santander in the past. They also need to deposit at least £1,500 and set up two direct debits within 60 days.
Eligible customers will receive the bonus payment within 90 days of beginning the switching process.
Are current account switching bonuses back?
The move comes after First Direct relaunched its £175 switching deal last week. Earlier this month Virgin Money also launched a switching deal offering 10 per cent interest for a year.
Alastair Douglas, chief executive of TotallyMoney said: ‘Just two weeks ago it looked like competition for current accounts was waning, but since then, we’ve seen Virgin Money, First Direct, and now Santander return to the market, offering either cash or high savings rates.
‘At a glance, the Sandander offer looks like great value, with a £175 bonus.
‘However, all three options carry fees of between £36 and £60 per year, and are only available to customers who’ve never benefited from a similar Santander incentive.
‘In reality, the switching bonus on offer is either £139 or £115 — which along with free-fee foreign spending, cashback, and easy access savings rates of up to 7 per cent, still isn’t a bad option.’
Unlike Santander’s offering, First Direct’s current account is free of fees, while Virgin Money’s M Plus account, one of three options, is also fee-free.
How can you qualify for the bonus?
In order to get their hands on the switching bonus, customers will need to complete the switch within 60 days of first requesting it.
Once their new current account ahs been opened with Santander, they must pay in at least £1,500 within the same 60 day period after the switch request.
They must also set up two active direct debits that do not include ones that fund savings accounts with Santander, Cahoot or Cater Allen.
Whilst the offer is open to existing Santander customers, there are certain stipulations in place.
The bank said existing customers with an eligible current account can use the switch service to transfer their balances and direct debits from other bank providers to their Santander account, and still receive the bonus.
However, existing customers can only take advantage of the offer at a branch of the bank, whereas new customers can carry out the process online.
These customers are also only eligible if they haven’t previously benefited from a Santander switch bonus.
Andrea Melville, director of current accounts, savings and business banking at Santander, said: ‘Following a fantastic response to our switcher incentive earlier this year, we are pleased to be able to offer yet another reason to join the bank.
‘Our switching offer gives customers an added boost, while our Edge current accounts provide customers with long-term ongoing value, through cashback on their essential spending and household bills.’
