Earn 5% AER on in-credit balances, enjoy the flexibility of a fee-free overdraft and get £100 cashback with Santander's Preferred Current Account
What's the deal?
The Santander Preferred Current Account pays a guaranteed 5% AER on balances up to £2,500 for 12 months.
The account also comes with a 12 month fee-free overdraft and Santander will match your existing overdraft limit up to a maximum of £5,000.
What's more, take advantage of Santander's Switcher Service and transfer your banking to Santander and you'll get £100 cashback too!
Who would it suit?
To be eligible for the attractive features available with the Santander Preferred Current Account you will need to be aged 18 or over and permanently resident in UK.
You must also be willing to transfer your banking using the Santander Switcher Service, set up at least 2 direct debits or standing orders on your account and be able to pay in at least £1,000 each month.
What's the catch?
The Santander Preferred Current Account is hugely competitive for the first 12 months you have it - providing you play by their rules.
However, if you don't pay in at least £1,000 a month you will be charged a £2 underfunding fee for each month that you fail to meet this requirement.
What's more, your fee free overdraft will end after 12 months and Daily Arranged Overdraft fees will start to be applied. These will be 50p for each day that you use your overdraft - although a maximum charge of 10 days a month applies.
The attractive rate of interest paid on your borrowing will also cease after the first 12 months of opening the account.
As such if you decide to open one of these accounts you will need to make a note of the year anniversary and look to switch your banking when you're no longer eligible for the introductory benefits.
You should also bear in mind that any balances over £2,500 won't earn any interest, even during the first year. As such you should avoid holding more than this in your account if you want to make your money work as hard as possible.
What's the alternative?
First Direct's 1st Account is an alternative that pays you £100 cashback when you switch your banking. What's more, if you don't rate their banking service and want to leave within 6 months of opening the account, they'll give you another £100.
While the account doesn't pay interest on in-credit balances it does come with a £250 interest free overdraft giving you some flexibility. You also get a host of handy features like text message banking and a handy iPhone app to manage your money when you're on the go.
The main issue with this account, however, is that a £10 monthly fee will apply if you aren't able to pay in at least £1,500 a month, or keep a balance of at least £1,500 in the account.
The Halifax Reward Current Account is another option that pays you.
Halifax will credit your account with £5 a month, each month you pay in at least £1,000.
We have done our very best to make sure that the information included in this Deal is accurate. However, sometimes offers can be withdrawn or changed at the last minute so please do check that you're able to redeem this Deal before parting with any money, or going out of your way to take advantage of the offer.
