Santander has launched a new deal which comes with cashback on spending as well as a linked savings account paying 4% interest.
Customers with the new Santander Edge current account and linked savings account will be able to earn up to £20 in cashback and £13.10 in interest per month, for a £3 monthly fee. The Santander Edge current account will offer cashback on both debit card spending and direct debits, with up to £20 cashback per month available.
Customers with the new current account can also receive 4% AER (annual equivalent rate) variable interest on balances up to £4,000 with a linked Santander Edge easy access saver account. The rate includes a 0.5% bonus rate for the first 12 months from the account being opened. No interest will be paid on balances above £4,000.
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The new account can be opened in branch or online. The bank said customers will also be able to access in-app budgeting tools, including a new subscriptions management feature, with more digital functionality to launch in coming months.
The new current account will offer 1% cashback, capped at £10 a month, on grocery shopping and transport-based debit card spending. It will also offer 1% cashback, capped at £10 per month, on household bills paid via direct debit, including council tax, gas and electricity, mobile, landline, broadband and paid-for TV packages.
The free use of Santander ATMs overseas is also included in the deal. The bank said it used extensive customer research to develop the account.
The bank's new rewards platform, Santander Boosts, is available to all its current account and credit card holders aged 18 and over. The scheme offers customers cashback, vouchers, discounts, prize draws, and giveaways tailored to their individual interests. Current offers include a £2,500 cash giveaway and a £500 eGift cards towards groceries, alongside other prizes.
To be eligible for the Santander Edge current account, customers need to have a minimum of £500 credited into their account every month and at least two active direct debits.
The bank already offers cashback on bills through its 123 current accounts. The 123 Lite current account has been removed from sale from Tuesday to coincide with the launch of Santander Edge.
Existing 123 Lite customers can continue to use their account as usual and there are no impacts to the 123 Current Account or any other Santander current accounts, the bank said.
Now might be a good time for savers to take a fresh look at the deals available as savings rates generally have been on the increase following a string of Bank of England base rate hikes.
Several banks are also offering large amounts of cash to switch. HSBC UK and Nationwide Building Society, for example, are offering switchers £200.
Rachel Springall, a finance expert at Moneyfacts.co.uk, said: "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.
"The Santander Edge current account may well entice consumers that want to earn cashback on their household bills and essential spending, but also, wish to stimulate their savings habit and earn some decent interest on an account that offers them complete flexibility.
"Further enhancements to the Santander Edge current account are set to be rolled out in the future, including a carbon footprint tracker and smart budgets, good news for those who are both conscious and wish to reduce their own carbon footprint and wish to scrutinise a budget.
"The Santander Boosts rewards platform is also available to all banking or credit card customers and could be of great benefit to those who frequently shop with certain brands."
Here are the qualifying debit card spending categories in transport and groceries for up to £10 cashback per month with the new Santander Edge Account:
- Service stations and UK petrol stations
- Automated fuel dispensers
- Suburban and local commuter passenger transport including ferries
- Passenger rail journeys
- Bus journeys
- Electric vehicle charging points
- Supermarkets and grocery stores
- Convenience stores
- Food markets
- Specialty food stores
- Vending machines
And here are the qualifying spending categories for up to £10 per month cashback on household bills paid via direct debit:
- Council tax bills (including Rates in Northern Ireland)
- Gas and electricity bills
- Water bills
- Mobile and home phone bills, broadband and paid-for TV packages
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