High street bank Santander is offering £150 free cash to customers in January who are willing to drop and switch their current account. Bank customers are among the most stubbornly loyal in the industry, with many customers sticking to the same bank for their entire adult lives after first opening an account.
This is why a lot of big-name banks resort to cash incentives to get customers to switch banks. Santander is one of four high street names, along with Nationwide, Co-Op and First Direct, that are offering cash payouts to customers willing to change to its current account, reports Express.co.uk.
The bank also uses the Current Account Switch Service, which means switches are automatic and only take a few days, with direct debits and standing orders automatically transferred. The Santander Edge account will pay customers £150 to switch, then also offers 1% cashback on bills, up to £10 a month, and 1% cashback on essential everyday spending.
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That means that alongside the £150 up front for switching, you could get another £240 if you max out the bills and spending cashback over the course of a year for a total of £390 – £150 in January and another £240 within 12 months. It also gives customers access to its 6% savings account (on balances up to £4,000).
Santander said: “We offer a simple, reliable and stress-free way to switch your current account using the Current Account Switch Service. Within 60 days of submitting your initial switch request, you’ll need to complete the full switch, set up 2 active Direct Debits and paid in £1,500.
“This isn’t available if you’ve already had an incentive payment to switch to a Santander current account. It’s important that the details you give us when switching are correct and the same as the ones held at your old bank. If you need to update anything on your old account, it’s best to do this before you start your switch.”
Customers then need to pay £3 a month to keep the account open, but this is more than offset by the cashback on spending if you use the account. Nationwide and First Direct are currently offering £175 to switch, but do not give cashback on bills and spending, while Co-Op offers £75 to switch.