Second major bank launches free cash offer – five-minute move to get £175
A SECOND major bank has launched a bank switching offer and customers can nab £175 free cash if they make the switch.
Santander now has a switching incentive for new customers looking to open an account.
Banks and building societies regularly run switching offers to draw in new customers but they usually only last for a limited time.
It comes after First Direct decided to relaunch its popular cash switch incentive last week for anyone who opens a 1st Account.
From today customers can switch to an eligible Santander account and gain an extra £175.
Unlike many other switching offer this deal applies to both new and existing Santander customers.
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To qualify for the £175 payment, customers must:
- Complete the full switch within 60 days of requesting the switch process (including the closure of the old account).
- Pay in at least £1,500 within 60 days of requesting the switch process. This does not need to be in one payment.
- Set up two active direct debits within 60 days. Direct Debits to fund Santander, cahoot, or Cater Allen savings accounts do not count for the purposes of this offer.
- Continue to hold the qualifying current account on the day the payment is made.
Note though the switching application is around five minutes it may take up to seven working days with the Current Account Switching Service (CASS), which you need to use to get the cash.
The £175 bonus will be paid out within 90 days of the account opening.
Andrea Melville, director of current accounts, savings and business banking, Santander said: “Following a fantastic response to our switcher incentive earlier this year, we are pleased to be able to offer yet another reason to join the bank.
“Our switching offer gives customers an added boost, while our Edge current accounts provide customers with long-term ongoing value, through cashback on their essential spending and household bills.”
How do I switch bank accounts?
SWITCHING bank accounts is a simple process and can usually be done through the Current Account Switch Service (CASS).
Dozens of high street banks and building societies are signed up - there's a full list on CASS' website.
Under the switching service, swapping banks should take seven working days.
You don't have to remember to move direct debits across when moving, as this is done for you.
All you have to do is apply for the new account you want, and the new bank will tell your existing one you're moving.
There are a few things you can do before switching though, including choosing your switch date and transferring any old bank statements to your new account.
You should get in touch with your existing bank for any old statements.
When switching current accounts, consider what other perks might come with joining a specific bank or building society.
Some banks offer 0% overdrafts up to a certain limit, and others might offer better rates on savings accounts.
And some banks offer free travel or mobile phone insurance with their current accounts - but these accounts might come with a monthly fee.
Which Santander accounts are eligible?
Customers looking to take advantage of this switching offer will need to switch to one of the three following accounts:
- The Santander Edge current account offers customers up to £20 a month from cashback on essential bills and spending, a linked 7.00% AER easy access saver, and fee-free spending abroad using the Santander Edge debit card, for a £3 monthly fee.
- Santander’s Edge Up current account offers customers up to £30 a month from cashback on essential bills and spending, 3.5% AER in credit interest (up to £25,000) on their current account balance, and fee-free spending abroad, for a £5 monthly fee.
- The Santander Private Current Account (v2) offers customers up to £1,500 in daily withdrawals from cash machines, access to 10,000 branches across 11 countries, and 3.5% AER interest on balances up to £25,000, for a £5 monthly fee.
Alastair Douglas, chief executive of TotallyMoney says that when you take into consideration the fees attached to the accounts customers will need to switch to the bonus drops.
He said: “In reality, the switching bonus on offer is either £139 or £115 — which along with free-fee foreign spending, cashback, and easy access savings rates of up to 7%, still isn’t a bad option.”
Are other banks offering switching bonuses?
At the moment First Direct and Santander are the only major banks with switching offers.
Anyone looking to snap up the relaunched £175 cash bonus needs to switch using the Current Account Switch Service (CASS).
Customers have to switch at least two direct debits or standing orders within 30 days of opening the account to qualify for the cash.
Switchers also need to add at least £1,000 into the account, register and log on to internet banking and use the debit card at least five times within 30 days of opening the account.
You won't qualify for the switching incentive if you have previously held a First Direct product or opened a HSBC current account on or after January 1, 2018.
Three other banks - Co-op, TSB and First Direct - with switching bonuses, all pulled the offers in January this year.
HSBC and Nationwide also had switching bonus offers worth up to £200, but these offers expired last year.
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Like the Lloyds offer the switching bonuses usually come with requirements, such as two regular direct debits in your account or a monthly fee.
It's worth keeping an eye on these offers may come around again.
How switching bank accounts affects you credit score
SWITCHING banks regularly can negatively impact your credit score meaning you're less likely to be approved for a loan or credit.
Your credit score may be affected if you make a switch so bear that in mind if you are looking to apply for a loan or you are planning on buying a property any time soon.
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