Santander launches £240 switching deal – who is eligible?

Santander has launched a new bank switching bonus which is currently the highest-paying deal on the market.

The high-street lender is offering new and existing customers £240 to move banks, but you will need to open both a current account and a regular saver with the bank to qualify.

There are currently six bank switching deals on the market, and Santander’s offer is the highest-paying for non-Premier accounts.

Santander’s switching deal – what’s on offer?

Santander’s £240 bonus is available to new and existing customers. To be eligible, you must do the following:

• Request to switch your account before 7 October using the Current Account Switch Service.
• Pay in at least £1,500, which can be done through one or more payments, within 60 days of requesting the switch.
• Set up at least two qualifying household direct debits.
• Fund a Santander Regular Saver with at least £200. You can either open a new account or fund an existing one, if you have one.

You must do this within 60 days of the initial switch request. You are not eligible if you held a Santander current account on 1 January 2026.

If you qualify, you will receive the cash bonus within 90 days of requesting the switch.

Is Santander’s switching deal worth it?

Rachel Springall, finance expert at Moneyfactscompare.co.uk, 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.”

Currently, there are six bank switching deals on the market.

HSBC’s switch offer pays £500 and another £290 in cashback, but it is only available for higher earners (£100,000+ salary) or those with at least £100,000 in savings or investments. This means Santander offers the best deal for most customers.

Santander’s regular saver pays the most on the market, a top rate of 8% that comes with a fixed 5% bonus for 12 months. You can save up to £200 each month, and the rate is variable. 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.”

You can also access Santander’s inflation-beating fixed-rate ISAs and its new cashback credit card that returns 3% on eligible everyday spending in the first year.

However, Santander is set to close 44 branches across the UK, so if you prefer in-person access to your money, you might want to check if your local branch is affected.

Alternatively, Nationwide Building Society is currently paying £175 to customers. While that doesn’t make it a market-leading deal, the building society has pledged not to close any more of its branches until 2030.

Plus, Nationwide ranks as one of the best current account providers in the country, and is well-known for its £100 Fairer Share Payment that it has offered for four consecutive years.

Ultimately, you should pick a bank account that offers you more than just a switching bonus and can actually meet your current account needs.