- Santander has launched a cash bonus for those who switch checking accounts
- But all three accounts offered in the switching agreement come with fees
Santander has launched a £175 switching bonus, with the offer open to new and existing Santander customers.
From today, customers who 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 involve monthly fees that eat up the bonus money.
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 per month for Edge Up and Private accounts.
Customers who want to receive the £175 bonus must use the current account exchange service and have not received a similar bonus from Santander in the past. They must also deposit a minimum of £1,500 and make two direct debits within 60 days.
Eligible customers will receive the bonus payment within 90 days of starting the switching process.
Are checking 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 with 10 percent interest for one year.
Alastair Douglas, CEO of TotallyMoney, said: ‘Just two weeks ago it looked like competition for current accounts was waning, but since then we have seen Virgin Money, First Direct and now Santander return to the market, with cash or high savings interest.
‘On the face of it, Sandander’s offer appears to be of great value, with a £175 bonus.
‘However, all three options come at a cost of between £36 and £60 per year, and are only available to customers who have never benefited from a similar Santander incentive.
‘In reality, the switching bonus on offer is £139 or £115 – which, together with free overseas spending, cashback and easily accessible savings rates of up to 7 per cent, is still not a bad option.’
Unlike Santander’s offering, there are no charges for First Direct’s current account, while Virgin Money’s M Plus account, one of the three options, is also free of charge.
How can you qualify for the bonus?
To receive the switching bonus, customers must complete the switch within 60 days of the initial application.
Once their new current account is opened with Santander, they will need to pay a minimum of £1,500 within the same 60-day period of the switching request.
They must also set up two active direct debits, excluding the direct debits that fund savings accounts with Santander, Cahoot or Cater Allen.
Although the offer is open to existing Santander customers, certain terms apply.
The bank said existing customers with a qualifying current account can use the switching service to transfer their balances and direct debits from other banking providers to their Santander account and still receive the bonus.
However, existing customers can only take advantage of the offer at a bank branch, while new customers can complete the process online.
These customers are also only eligible if they have not previously benefited from a Santander switching bonus.
Andrea Melville, director of current accounts, savings and business banking at Santander, said: “After a fantastic response to our switching incentive earlier this year, we are pleased to be able to offer another reason to join the bank.
“Our switching offer gives customers an extra boost, while our Edge current accounts provide customers with lasting long-term value, through cashback on their essential expenses and household bills.”