Focus on: £300 for switching current account

The idea of switching current accounts can seem like a lot of unnecessary hassle, but banks are offering increasingly tempting incentives to persuade us to move.

Santander, for example, is offering customers who switch the opportunity to earn up to £300 cashback.

We take a look at how you can qualify for the free cash and whether this is the right account for you…

What’s the deal

Santander is offering a £300 switching incentive to existing Santander mortgage customers who open a current account, provided they can deposit at least £10,000 in a Santander savings account as well.

Mortgage customers who do not want to open a savings account as well as a current account with Santander get £200, and anyone else who chooses to switch to a Santander current account will receive £100.

Customers must switch their main current account to either a Santander Preferred, Reward or Premium current account to qualify for the cashback.

All three pay a market-leading 5% AER in- credit interest for 12 months on balances up to £2500 and offer a free, arranged overdraft for the first year, dependant on circumstances.

For customers looking to switch and receive additional benefits, the Santander Reward Current Account may be worth considering.

Although this comes with a fee of £10 a month, it offers more than £400 worth of benefits.

Along with 5% in-credit interest for 12 months, customers will also receive worldwide travel insurance, breakdown cover, identity protection and a free arranged overdraft for four months.

The Santander Premium Current Account is another option. This comes with a £20 monthly fee, but offers a host of extras worth over £830. 

Along with the benefits of the reward account, customers can expect to receive mobile phone insurance, legal assistance, and commission-free travel money among others.

Any catches?

You must open the account by 6th November and commit to paying in at least £1,000 a month to receive cashback. Any less then this and you will be liable for a £2 underfunding fee on the Preferred Current Account.

Monthly account fees apply on the Reward and Premium account. You must also have at least two active direct debits or standing orders set up on the account within 13 weeks of opening.  

 If you currently hold or have held in the past 3 months any Santander or Alliance and Leicester current accounts, you will not be eligable.

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Verdict

If you are considering switching, it’s important to make sure that you choose a current account that will suit your needs in the long run and are not dazzled by the switching incentives.

However, if Santander ticks all the boxes, then switching is definitely an attractive option. With the market-leading 5% in-credit interest along with the prospect of cashback and free overdraft for a year, it is sure to be a popular choice.

Top tip

Remember that the 5% credit interest on the Santander account is only on the first £2,500 balance and only for the first year. That means after a year, you may want to consider switching any savings built up in your account to a high interest savings account instead.

Please note: Any rates or deals mentioned in this article were available at the time of writing. Click on a highlighted product and apply direct.

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