SANTANDER has launched a new current account offering customers £20 a month in cashback.
It comes after the high street bank, which has around 14million UK customers, scrapped its 123 Lite current account last month.
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The new Santander Edge Explorer current account offers a package of perks such as worldwide family travel and mobile phone insurance, UK and European breakdown cover and “24/7” remote access to a GP in the UK.
However, customers must pay a monthly fee of £17 to maintain the account.
Benefits include 1% cashback up to £10 per month on eligible debit card spending plus up to £10 per month on eligible household bills paid by direct debit.
Customers will also have access to Santander’s Edge Saver account paying 6.00% AER (annual equivalent rate) interest on balances up to £4,000.
The rate includes an initial bonus rate for the first 12 months from account opening.
Other perks with the account include no foreign exchange fees on purchases overseas and no Santander fees on international money transfers.
Customers must be aged 18 to 73 to apply and be UK residents to have the account. Joint account holders must live at the same address to have the account and insurance, the bank said.
They may only open one Edge Explorer current account per person, it added.
Moneycomms founder Andrew Haggar told The Sun the new account appears to be a “really decent offer”.
“The cashback, bills rebate and savings interest can earn you almost £40 per month if you use it to the full. That includes keeping a £4,000 credit balance in the linked savings account for the whole 12 months.
“If you can do that it’s a no brainer, as this will pay for the £17 monthly fee and some,” he said.
“In reality this means you’re getting the travel insurance, car breakdown cover and mobile phone insurance cover for free and bagging an extra £23 per month into the baragin.”
He added: “It stacks up well against the competition with the much loved Nationwide FlexPlus packaged account offering similar insurance deals at £18 per month but without the credit interest or cashback.
“Always check the terms and conditions of the insurance features to ensure they work for you, but this product is definitely worth a closer look.”
Santander UK head of current accounts Anthony Warrington said the account had been designed to provide “customers and their families with cover for some of life’s ‘what ifs’, whether that’s a lost phone or a holiday that doesn’t quite go to plan”.
Rachel Springall, a finance expert at Moneyfactscompare.co.uk, said that for some people, it may be more cost-effective to open an account with a bundle of incentives.
But she said: “It is essential customers take time to pick which benefits would be most valuable to them.”
She said that people should also check levels of protection when weighing up whether products are right for their needs.
Ms Springall added: “The account charges a £17 monthly fee, but this can be wiped away from the attractive cashback offer, where customers can earn up £20 from both debit card spending and through eligible household bills.
“On top of this, the account provides access to the Edge Saver account which pays an attractive 6% AER.
“As an alternative, the Nationwide FlexPlus offers a comprehensive package of insurance add-ons and is currently paying switchers £175.
“Switching current accounts is quick and easy to do and the Current Account Switch Service (Cass) moves over both any balance and redirects both standing orders and direct debits to a new account.”
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