Santander Switching Deal Pays £240, But Two Exclusions Could Catch You Out

Santander’s £240 switching deal is now the highest-paying offer available to most UK current account holders, but the eligibility rules are stricter than the headline figure suggests. Requests must be submitted between 1 September and 7 October 2026 through the Current Account Switch Service on Santander’s website, and two groups are excluded: those who held a Santander current account on 1 January 2026, and anyone who has previously received a Santander switcher incentive.

What the Santander Switching Deal Requires

To unlock the £240 bonus, switchers must pay in at least £1,500 (across one or more payments) within 60 days of requesting the switch, and set up at least two qualifying household direct debits. They must also fund a Santander Regular Saver with at least £200 within the same 60-day window. The cash bonus is paid within 90 days of the switch request.

The Regular Saver itself adds to the first-year maths. Saving the maximum of £200 a month at the account’s variable 8% AER rate (with a fixed 5% bonus for 12 months) would earn an estimated £104 in interest over the year, according to Finder UK. Combined with the £240 switching bonus, the total first-year benefit reaches £344 for a consistent saver.

The Regular Saver is open to holders of qualifying Santander current accounts: the fee-free Everyday and Edge Student accounts, and the Edge, Edge Up and Explorer accounts, which carry fees of up to £17 a month. The account can be opened with as little as £1, and withdrawals are penalty-free at any time.

Rachel Springall, finance expert at Moneyfactscompare, says: ‘Santander’s new current account switching offer of £240 could be an enticing choice for customers who might need a financial boost after the summer holidays. It is one of the highest free cash payments available on a fee-free account, ideal for those who want a simple, straightforward account for their everyday banking.’

How It Stacks Up Against the Competition

There are currently six bank switching deals on the market. The table below covers the main options.

HSBC’s offer is the richer one in absolute terms, but it targets high earners and high-net-worth savers exclusively. For everyone else, the Santander switching deal stands at the top of the market. Nationwide’s £175 offer lags on cash, though the building society’s pledge not to close branches until 2030 carries weight for customers who value in-person access, and it has paid a £100 Fairer Share Payment for four consecutive years.

On the savings side, the nearest competitor to Santander’s 8% AER Regular Saver is the Regular Saver Account from first direct, which pays a flat, fixed rate of 7.00% AER at maturity. Springall adds: ‘Unlike some other regular savers on the market that revert to a flexible saver earning a much poorer return, Santander’s account will continue for another year, paying 3% AER.’

For context, Santander’s previous switching offer paid £180 and ended on 31 July 2026. The step up to £240 is a meaningful increase, though the addition of the Regular Saver requirement makes this a bundled proposition rather than a simple cash handout.

Branch Closures: The Trade-Off to Consider

Switching to Santander comes with a caveat on physical access. The bank is closing 44 branches, a programme linked to its £2.6bn takeover of TSB, putting 291 jobs at risk. Santander has cited that 96% of its transactions are now carried out digitally, according to the BBC.

These 44 closures are not isolated. An earlier round of 95 branch closures, announced in March 2025, affected 750 employees. Across both programmes, MoneySavingExpert confirms Santander will shut 58 branches in total in 2026 and 2027. After all closures, the network will comprise 305 branches and 111 Santander Locals, where Community Bankers offer in-person support from community locations.

For customers who rely on branch banking, verifying whether a local branch survives is a practical pre-switch step. The switching deadline of 7 October 2026 leaves limited time to do that due diligence alongside the other eligibility requirements.