Santander offers £200 to switch bank accounts: Is it a good deal?

Economy
By Liam

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Santander is offering £200 cash to switch bank accounts, but beware of obligations

  • Santander pays the money to people who close one of its checking accounts
  • But only one of these accounts is free, the rest have a monthly fee

By Sam Barker This is money

published: | Updated:

Santander has launched one of the best bank account switching deals ever, with a £200 cash offer, but there are some terms and conditions attached.

In recent months, several banks have launched generous deals for those looking to swap their current account, with offers of £200 from Lloyds and £175 from First Direct.

Now Santander has launched a £200 bonus for people who switch bank accounts using the Current Account Switch Service.

Cash bonus: Banks pay customers for switching their bank account via the Payment Account Switching Service

That’s £25 more than Santander offered with its last switching deal in August 2022, and close to the all-time record switching bonus of £250 paid in 2017 to those who took a current account of the former Clydesdale Bank brand B.

However, there are some hoops you have to jump through before you get the money – and depending on which Santander checking account you choose, you may have to pay a monthly fee.

Only one of the Santander current accounts eligible for the £200 bonus is free, and the others all have monthly fees and other requirements.

To get the money, you need to close a Santander 123, Edge, Everyday or Select checking account.

Of these, only the Everyday is free, without monthly costs. The Edge has a fee of £3 per month, while the 123 and Select accounts cost £4 per month. The Select current account also requires you to pay an income of £5,000 per month or have at least £75,000 in Santander accounts.

Second, to get the £200 you need to set up two direct debits within 60 days, pay a minimum of £500 and log into Santander’s online or mobile banking.

Finally, if you’ve ever earned a switching bonus from Santander before, you won’t be able to earn the £200 this time.

Santander UK’s head of banking, Hetal Parmar, said: ‘For a limited time, we are offering £200 cashback to customers who transfer their current account to Santander, helping people put even more money into their wallets.’

Some of the Santander bank accounts that pay the £200 to switchers have other benefits as well.

Santander Edge – up to £20 cashback per month on travel and bills and 4% on savings

  • 1 percent cashback (capped at £10 per month) on shopping bills and transport costs paid by debit card
  • 1 per cent cashback (capped at £10 per month) on household bills paid by direct debit (council tax, gas and electricity, mobile, fixed, broadband and paid TV packages)
  • 4 per cent savings interest on up to £4,000 a year with the linked easy access savings account, Santander Edge saver
  • No fees for Chaps bank transfers in the UK and abroad

Santander 123 – cashback on accounts and overdraft interest

  • Monthly interest of 1.75 per cent on current account balances up to £20,000
  • Up to 3 per cent cashback on selected household accounts, with a maximum of £5 in each cashback tier each month

Select current account – current account interest, cashback and 24-hour helpline

  • Monthly interest of 1.75 per cent on current account balances up to £20,000
  • Up to 3 per cent cashback on selected household accounts, with a maximum of £5 in each cashback tier each month
  • 24-hour helpline

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