Santander launches new Edge Up account with cashback
Santander launches new Edge Up account with cashback, in credit interest and fee free spending abroad.
Both Edge accounts offer cashback and fee free spending abroad. However, Edge Up takes it to the next level with in credit interest and a higher cashback threshold.
What does Santander Edge Up offer?
The main appeal of the new Santander Edge Up is its cashback offer. Customers can earn up to £30 a month on selected household bills and essential spending. Here’s how it’s broken down:
- Earn 1% cashback (up to £15 a month) on selected household bills when you pay by direct debit.
- Earn 1% cashback (up to £15 a month) at supermarkets and on travel costs when you use your debit card.
While the rate of cashback is the same as the Edge account, the amount you can earn each month is higher. (With the Edge account you can only earn up to £10 cashback a month.)
The other key benefit of the Edge Up account is a monthly interest rate of 3.50% AER/3.45% gross (variable) on balances up to £25,000. Something which the Edge account doesn’t offer. You can also make international payments with no extra fees.
Finally, there are no fees for using your debit card abroad to withdraw cash or to make payments. Another new feature of both Edge accounts.
Understandably, the Edge Up account has a slightly higher fee of £5 a month (compared to £3 for the Edge account) due to its higher level of potential rewards. You’ll also need to pay in a minimum of £1,500 a month and set up 2 direct debits.
What’s happening to Santander 123?
Santander will no longer be offering its popular 123 current accounts to new customers. However, existing 123 current account customers won’t be affected. Also, Santander will still be offering its 123 Mini and 123 Student account.
The old 123 current account offered slightly more in terms of interest on household bills, as it was tiered, with the maximum cashback rate reaching 3%. However, the 123 current account didn’t offer any sort of cashback on debit card spending. So the Edge and Edge Up accounts clinch it there.
If you compare Santander’s Edge Up cashback offer with other cashback cards, it loses out due to its £5 monthly fee. Its main competition is Chase, whose free account offers 1% cashback on all debit card spending up to £15 a month.
While this amount is lower than the maximum you can get with Santander Edge Up each month, it’s probably more achievable because there aren’t as many restrictions on what you can earn cashback on.
If you’re in the market for a new current account, take a look at our picks for the best bank accounts in the UK.