Santander launches Edge Up current account – how does it compare?
Santander has launched a new current account offering up to £30 cashback a month as well as 3.5% interest on balances up to £25,000.
The new Edge Up account also features fee-free debit card spending abroad, which is good news for anyone planning a foreign holiday this summer.
The bank claims these perks and incentives are aimed at supporting customers during the cost of living crisis, but there are some caveats to be aware of.
Here, Which? takes a closer look what the account offers and how it stacks up against other high-interest current accounts on the market.
What does the Edge Up current account offer?
Santander's new Edge Up current account is available now and offers customers:
- 1% cashback (up to £15 a month) on debit card spending at supermarkets and on travel.
- 1% cashback (up to £15 a month) on selected monthly bills paid by direct debit, including council tax, water, gas, electricity, phone, mobile, and pay-TV subscriptions.
- 3.5% AER interest on current account balances of up to £25,000.
- Fee-free debit card spending aboard including no charge at overseas ATMs.
Other benefits include fee-free international and UK transfers using Chaps to any other bank, plus access to the in-app My Money Manager tool and Santander Boosts – a scheme featuring cashback offers on shopping from a range of retailers as well as vouchers, discounts, prize draws and giveaways.
Holders of the Santander Edge current account, which launched last November, will also benefit from no fees on debit card use abroad from today.
Andrea Melville, director for personal current accounts and savings at Santander UK, said: 'We know many people are experiencing financial pressures at the moment with the increased cost of the weekly food shop, high energy costs, and other bills going up.
'Our new Edge Up Current Account is all about making it easier for our customers to make the most of their everyday spending and help them make their finances stretch a little bit further.'
What to know before applying
New customers can sign up for the account online, over the phone, or in branch. They can also use the free Current Account Switch Service to ditch their old provider for Santander within seven days.
Santander's 123, Select, and Private current accounts will no longer be open to new customers from today (20 June), but existing account holders can transfer to an Edge Up account if they wish, without having to change their details including their account number and sort code.
There are a few caveats to be aware of, however.
- There is a £5 monthly fee for all current account holders.
- To benefit from the cashback and interest features, customers must pay in a minimum of £1,500 a month and set up two direct debits from the account.
- Payments for streaming services such as Netflix aren't included in the 1% cashback offer – 'TV subscriptions' refers instead to providers such as Sky, BT and Virgin Media.
- Cashback on travel includes fuel, train and bus tickets and electric vehicle charging – but flights aren’t included.
How Santander compares to other banks
While looking at interest rates and benefits such as cashback are important when choosing a current account, it's also wise to consider other factors – for example, whether branch access matters to you, and the level of customer service offered.
You can find out how customers rated Santander in our best and worst banks guide.
Are there better deals elsewhere?
Santander isn't the only bank or building society enticing new customers with attractive benefits and bonuses. A number of providers have recently upped their interest rates and boosted cashback offers for current account holders.
For example, Kroo will raise the rate it pays on current account balances from 3.6% AER to 3.85% on 1 July, while Chase introduced 1% AER interest on money in its current account for both new and existing users in April.
We've taken a look at current accounts that pay interest to see how the new Edge Up account compares.
| Account | Interest rate (AER) | Other account features | Monthly fee? |
|---|---|---|---|
| Nationwide Building Society, FlexDirect | 5% on up to £1,500 in year one (0.25% after a year) | Fee-free overdraft for a year and a linked saver paying 2.25% for a year. | No |
| Kroo Bank, Current Account | 3.6% on up to £85,000 (rises to 3.85% from 1 July) | No debit card fees abroad | No |
| Santander, Edge Up | 3.5% on up to £25,000 | 1% cashback on debit card spending at supermarkets and on travel, 1% on monthly bills paid by direct debit, no debit card fees abroad | £5 a month |
| Virgin Money, M Plus | 2.02% on up to £1,000 | No debit card fees abroad and a linked M Plus Saver paying 3.03% on up to £25,000 | No |
| Bank of Scotland, Classic with Vantage | 1.5% on balances under £4,000 then 3% on balances from £4,000 to £5,000 | Up to 15% cashback on card purchases at selected retailer | No |
| Lloyds Bank, Club Lloyds | 1.5% on balances under £4,000 then 3% on balances from £4,000 to £5,000 | Free annual gift (either 12 months of Disney+, six cinema tickets, an annual digital Coffee Club and Gourmet Society membership or an annual magazine subscription) and up to 15% cashback on card purchases at selected retailers | £3 a month – waived with minimum monthly deposit of £2,000 |
As you can see, Santander's Edge Up account offers the third-highest interest rate on current account balances.
Although its cashback rate may be lower than others, it can be earned on a wider range of payments, including utility bills and essential spends such as grocery shopping and travel. With food inflation still soaring and energy bills remaining high, it is likely to be an attractive benefit for many customers.
However, it does have a £5 monthly fee – the highest of the bunch – so you'll want to factor that in when deciding whether the current account is right for you.
- Find out more: best high-interest bank accounts
