Santander UK has launched a £200 switching offer in a sign that the battle to attract current account customers is heating up.
The offer is open to new and existing customers when they switch to a Santander Edge, 123 Current Account or other eligible current account using the Current Account Switch Service (Cass).
To qualify, customers need to complete the switch using Cass and, within 60 days, set up and maintain two active direct debits, deposit at least £500 a month, and log in to online or mobile banking.
The cashback will then be paid into their qualifying Santander account within 30 days.
The £200 offer is for a limited time and can be withdrawn at any time, the bank said.
To qualify, as well as meeting eligibility criteria, new and existing customers must have not previously received or participated in any other incentive for switching to any of Santander’s accounts or any account with cahoot or Cater Allen, which are part of Santander UK.
The eligible Santander accounts are Edge, 123, Select, Private and Everyday.
Santander Edge was launched in November, enabling customers to earn up to £20 cashback on essential bills and spending, plus 4% interest on savings, for a £3 monthly fee.
The new current account offers 1% cashback, capped at £10 a month, on grocery shopping and transport-based debit card spending.
It also offers 1% cashback, capped at £10 per month, on household bills paid by direct debit, including council tax, gas and electricity, mobile, landline, broadband and paid-for TV packages.
There is also a linked easy access savings account called the Santander Edge saver, offering 4% AER (annual equivalent rate) interest on balances up to £4,000, which includes a 0.5% bonus rate from the first 12 months of the account being opened.
The Santander 123 Current Account has a monthly fee of £4 and offers 1.75% annual interest on balances up to £20,000 as well as cashback on bills.
Hetal Parmar, head of banking at Santander UK, said: “With many of us being mindful of the rising cost of household bills, groceries and travel, our Edge Current Account is specifically designed to pay cashback on these essential bills and spend.”
Rachel Springall, a finance expert at Moneyfacts.co.uk, said: “It’s great to see Santander launch an attractive switching cashback incentive for new and existing customers at a time when there are very few other brands doing the same.
“The Edge account is the newest addition to the range of options from Santander and may well be an enticing choice for customers who want to earn a little bit of their monthly bills and shopping.
“Elsewhere, Lloyds Bank will pay customers £200 as a switching incentive until March 20 on selected accounts and first direct will pay £175 when customers switch to its 1st Account.”