Major bank launches new current account with a 6% savings rate

Santander has launched a new current account with a range of perks called Edge Explorer. The account comes with a monthly fee of £17 which would see customers parting with £204 a year for the privilege of keeping the account.

In exchange, customers will receive up to £20 in cashback which many Santander Edge customers will have missed following Santander axing the cashback offer this account came with in May.

But with a £17 fee, most of the cashback earned with the new account will be wiped out each month with just £3 left over once the fee is taken into account – and that’s with someone getting the full £20 cashback. One of the biggest draws of the new Santander account is the 6 per cent linked Edge saver easy-access account it comes with.

This rate includes 2.5 per cent bonus rate for the first 12 months of opening the account. No other account on the market can beat this rate for an easy access-account. The top easy-access rate on the market is currently 4.3 per cent.

However, you can only put £4,000 into the Edge saver and the 6 per cent rate. But a balance of £3,400 in the 6 per cent linked savings account would earn you the equivalent of £17 per month interest. The account also comes with 1 per cent cashback up to £10 per month on eligible debit card spending and up to £10 per month on eligible household bills paid by direct debit meaning customers can earn up to £20 a month.

In exchange for £17 a month, Edge Explorer customers also get worldwide family insurance provided by Chubb European Group with winter sports cover. Worldwide travel insurance covers you and your partner up to the age of 75 and any dependent children or grandchildren under 18 who live at the same home address. Dependents are covered up until 23 if they’re still in full-time education. With the account, customers can also earn 1 per cent cashback up to a maximum of £10 a month on council tax bills, mobile and home phone bills, broadband and paid-for TV packages, gas and electricity bills and Water bills

Andrew Hagger founder of personal finance website MoneyComms says: ‘To get the £10 back your monthly eligible bills above will need to total at least £1,000 – that might prove a tall order for some people.’ You can also earn 1 per cent cashback capped at £10 per month on supermarket purchases in the UK, travel, fuel, train and bus tickets and electric vehicle charging. To get the most out of the cashback feature, Mr Hagger says: ‘You have to work out your monthly spend to estimate what your cashback on this spending would look like – if it only totals £600 you get £6 back rather than the maximum £10.’

Edge Explorer customers will also get 24/7 access to online GP services provided by Teledoc also through Chubb European Group. This allows them to speak to a doctor and receive prescriptions while in the UK. UK and EU breakdown cover provided by Allianz and mobile phone cover provided by Aviva also come with the account. The account comes with fee free spending abroad.

Mr Hagger says: ‘This looks like a really decent offer as the cashback, bills rebate and savings interest can earn you almost £40 per month as long as 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 then some.’

‘In reality this means you’re getting the travel insurance, car breakdown cover and mobile phone insurance cover for free and bag an extra £23 per month into the bargain. 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 opportunities.’