Another brand new switching offer, and it’s open to existing customers too.
Another new bank switching offer for 2023, and this time from Santander. Here’s what you need to know in order to get the free cash, and my analysis of how it compares to the other options available right now.
How much can you get for switching to Santander?
This offer is a hefty £200, increased from the £175 offer that ran last year. It’s also the equal highest paying right now, and when you factor in account cashback it’s easily worth £230 or more in year one.
You can only get one £200 bonus per person, so there’s no trick to double this with extra accounts or joint accounts. There’s also only one payment per joint account, so I’d suggest couples open up two separate accounts to maximise the cash they get.
Who can get the Santander switch bonus?
It’s available to new and existing customers on the following accounts:
If you don’t have one of these accounts you’ll need to open one. If you already have it, you can switch directly into it.
You have to use the Current Account Switch Service to transfer in from a bank account held at another bank. This old account will be closed.
You can’t get the money if you’ve ever had a switching bonus from Santander. I checked and this includes the £50 refer-a-friend offer that used to run. This also includes offers for Cahoot or Carter Allen banks which are part of Santander.
What are the requirements for the Santander switching offer?
There’s quite a bit you need to do with this switch, though you’ll find that these are also requirements for some of the accounts to earn ongoing cashback.
Two active Direct Debits
First the account you switch into needs to have two Direct Debits active when they run their eligibility checks (around 60 days after starting the switch).
These can be set up after the switch if you don’t have them on the old account you’re switching from. Here are some ideas for new Direct Debits you can set up, however with the Edge or 123 you’ll want to move your bill payments over to earn the cashback.
If you are an existing account holder and already have Direct Debits on there then you don’t need to set up new ones. I’ve had confirmation from the Santander press office on this.
A £1,000 deposit
You must pay into the account at least £1,000 in the first 60 days. This can be a single payment, or multiple deposits. The money doesn’t have to stay in the account. You can spend it or transfer it out to a different account.
Check online banking
Finally, make sure you log in to your online or app banking at least once in the first 60 days.
When does the offer end?
Santander didn’t publish an end date for this offer at the start, however it’s announced it will now end at 23:59 on Thursday 9 February 2023.
At just 17 days a significantly shorter run time that previous instances of this offer.
Switching as an existing customer
This is a bit annoying – to switch to an existing Santander account you need to visit the branch. This might require an appointment.
You can get around this by opening up an additional account online. This is what I did last time. I already had a 123 Lite account, but applied for an Everyday account, and switched to that. It also meant I had a spare “dummy” account to use for future switching deals.
When will the money be paid?
The bank will check you’ve met the conditions 60 days after you’ve started the switch, and pay the money within 30 days of this. So you’re looking at three months at most to get the cash.
However it could be earlier. I got my cash in eight weeks a few years ago.
Which Santander account should I choose?
If you don’t already have a Santander 123 Lite account (sadly no longer available to new customers), then it’s worth looking at either the 123 or Edge accounts to earn cashback on your bills. Bear in mind though that both have monthly fees and other conditions. Here’s my comparison of the two options with more details.
However, if you don’t pay the bills or already have one of the accounts, I’d look instead at the free account.
The Everyday current account does all the basics you need from a current account but there’s no fee or monthly requirements to be met.
Is it worth switching to Santander?
If you are going to earn cashback on bills via on of the accounts I’d keep this as an account just for those payments rather than making it your main account.
This separation helps with budgeting and also allows you to take advantage of better banking experiences from the likes of Starling or earn money on spending from Chase.
I also think this it’s worth keeping the account going to earn that money back on bills, rather than switch again for a different deal.
Switch offer summary
£200 Santander switch offer
|Around 90 days after requesting the switch
|Open to existing customers
|Open a new or hold an existing 123, Edge, Everyday, Select or Private current account
|Set up two Direct Debits after the switch
|Log into app or online banking
|Switch using the Current Account Switch Service and close your old account within 60 days of starting the switch
|The old account must be from a different bank
|Not have received a bonus already
Other switching offers
A number of banks are also offering an incentive to switch, so do look at the list below before deciding which to go for – you might be able to get one of those in before the Santander switch.
A quick note though that if you are opening new accounts (rather than switching into existing accounts) you will be credit checked on each application.
Previous Santander bank switch offers
- September to December 2021 – £130
- January to March 2022 – £140
- August to September 2022 – £160, then £175