This Morning: Martin Lewis gives advice on interest rates
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Santander said the current account was ‘designed’ to support customers with their essential bills and spending as the account enables customers to earn up to £20 in cashback. Through Santander Edge, customers get access to the exclusive linked easy-access savings account, Santander Edge saver.
This particular account offers an interest of four percent AER / 3.93 percent gross (variable) on balances up to £4,000.
Santander offers no interest on balances above this.
The bank also includes a 0.5 percent AER bonus rate onto the savings account for the first 12 months from opening.
Santander said the account was variable so the interest rate could rise and fall “in response to industry and market conditions.”
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The bank states that it will let someone know around two months before the rate changes.
A £1,000 deposit on the account could earn someone £39.30 worth of interest over the course of 12 months.
The savings account is only available to Santander Edge current account customers and the current account comes with a £3 per month fee.
With the Santander Edge current account, customers can get one percent cashback on spending at supermarkets and travel.
This includes spending at convenience stores, food markets, speciality food outlets, vending machines, petrol, electric vehicle charging, and train, bus and ferry fares. However, air travel spending is not included.
On top of this, one percent cashback is offered on household bills which are paid with Direct Debit.
This cashback deal covers council tax, gas and electricity, mobile, landline, broadband and paid-for TV deals.
However, unlike Santander’s 123 Lite account, Santander mortgages are not included in the cashback offer.
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The cashback is capped at £10 a month so if someone pays a £200 energy bill they will receive a £2 cashback.
To get the cashback on the current account people must deposit at least £500 per month and have two active direct debits.
People can open an account with a minimum of £1 but must need to be a UK resident and be aged 18 years or over.
The account can be managed online and through mobile banking, and withdrawals can be made at any time.
Santander said it created the account to help its customers “make the most of their money”.
On the launch of the account, Enrique Alvarez, chief customer officer, at Santander said: “Building on our focus on cashback, we will be rewarding them for their essential spending, whether that’s the weekly supermarket shop or travelling to work, and their household bills – particularly relevant given current pressures.
“The exclusive saver also provides a preferential rate for people looking to earn interest on their easy-access savings. Added to this, we’ve enhanced our app, with more in-app benefits being rolled out over the coming months.
“What’s more, our new rewards programme Santander Boosts, provides customers with tailored perks according to their interest and hobbies. From discounts at their favourite retailer, to access to prize draws and additional cashback, giving them a little boost when they bank with us.”
Earlier this month, Santander confirmed it has withdrawn its popular 1|2|3 Lite savings range from public sale, which means it will no longer be accessible to new customers.
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