Santander launch market-leading easy access rate in current account overhaul

The Santander Edge saver will only pay this rate on balances up to £4,000.

Santander launched its new current account which is exclusively linked to its market-leading easy access rate today.

This easy access rate is included under the Santander Edge saver, an account which offers a rate of 4.00% AER on balances of £4,000 or less.

It is worth noting that this rate includes a 0.50% AER bonus, which is only available for 12 months.

Based on Santander’s calculations, if you wish to take advantage of the 4.00% AER rate the most interest you can earn is £13.10 a month. 

To open this account, you will need to open its newly launched Santander Edge current account either in branch or online.

With the launch of the Santander Edge current account, the Santander 1|2|3 Lite has been withdrawn from the market.

Like its predecessor, the Santander Edge current account offers a cashback incentive for its frequent users.

Essential grocery and transport-based debit card spending earns 1% cashback while direct debits for household bills for council tax, gas, electricity, mobile, landline, broadband and paid for TV packages qualify for this incentive too.

Cashback on direct debit and debit card spending is capped at £10 a month each, with the current account requiring a monthly fee of £3.

“The Santander Edge current account may well entice consumers that want to earn cashback on their household bills and essential spending, but also, wish to stimulate their savings habit and earn some decent interest on an account that offers them complete flexibility,” said Rachel Springall, Finance Expert at Moneyfacts.

Previously, the Santander 1|2|3 Lite account required a monthly fee of £2 but restricted cashback earnings to £15 a month.

Those who currently hold a 1|2|3 Lite account can continue to hold the account as usual.

In addition to its cashback incentive, Santander Edge current account customers can make use of Santander ATMs overseas for free. International transfers using the UK Chaps system will be free too. 

Otherwise its users will also qualify for Santander boosts, a digital banking rewards platform that offers cashback, prizes, and giveaways for other stores.

“Further enhancements to the Santander Edge current account are set to be rolled out in the future, including a Carbon footprint tracker and Smart Budgets, good news for those who are both conscious and wish to reduce their own carbon footprint and wish to scrutinise a budget, said Springall.