Santander ‘Edge Up’ launching today

TheBanker

RN61 said:

Perhaps this will encourage Chase either to allow their 3.5% savings account to be set as funding source for their debit card, which only allows current account to be set at present. Or, pay 3.5% on current account balances!

I wouldn't have thought so. The Chase proposition isn't really comparable with Santander. For a start Chase is free, whereas Santander charge a fee. And Chase's cashback is on all debit card purchases, whereas Santander's is on some debit card purchases and some direct debits. 

I doubt many people will be closing their Chase accounts to move to a Santander Edge Up. In fact these two accounts could live happily side by side - I said on another account that I tend to use Chase like a pre-paid card and I think lots of others will do the same.

crumpet_man

TheBanker said:

Futuristic said:

The account isn't bad, people have also missed the fact it has 0 fx fees incl cash withdrawals and there are quite few countries with Santander branches. It's certainly not a bad offering, quite surprising how good it is actually for a big bank.

I think it's a good offering for someone simply wants a current account to use as it's designed. The MSE approach seems to be to run multiple accounts in parallel, sweep funds through them to meet minimum deposit requirements, set up £1 direct debits to get switching incentives, make 1p card transactions to benefit from the account where these generate incentives, running multiple regular savings accounts etc. There is nothing wrong with doing this, but it's not how 'normal' people approach their banking and it's not really how banks design their accounts to be used. 

For someone who's not interested in doing all of that, the Edge and Edge Up accounts could be good. Their salary credit will probably meet the minimum pay-in requirement. Their household direct debits and regular card spend will generate cashback, which will likely exceed the account fee, and they can earn interest on surplus funds either in the Edge Saver, or the Edge Up account. 

In other words, it's an account for someone who does not frequent MSE and is not that bothered if they would be better off with a different bank account.

For me, the cashback on household bills would just cover the £5 monthly fee. I have the no longer available 123 lite with whic I get just over  £9 a month in cashback.

The debit card cashback can be bettered with Chase debit card purchases and it has the same travel benefits as Santander. 

Instant access savings with Chip at 4%

If I were to use the Edge account instead of Chase and Chip, I would be about £200 a year worse off.

TheBanker

crumpet_man said:

TheBanker said:

Futuristic said:

The account isn't bad, people have also missed the fact it has 0 fx fees incl cash withdrawals and there are quite few countries with Santander branches. It's certainly not a bad offering, quite surprising how good it is actually for a big bank.

I think it's a good offering for someone simply wants a current account to use as it's designed. The MSE approach seems to be to run multiple accounts in parallel, sweep funds through them to meet minimum deposit requirements, set up £1 direct debits to get switching incentives, make 1p card transactions to benefit from the account where these generate incentives, running multiple regular savings accounts etc. There is nothing wrong with doing this, but it's not how 'normal' people approach their banking and it's not really how banks design their accounts to be used. 

For someone who's not interested in doing all of that, the Edge and Edge Up accounts could be good. Their salary credit will probably meet the minimum pay-in requirement. Their household direct debits and regular card spend will generate cashback, which will likely exceed the account fee, and they can earn interest on surplus funds either in the Edge Saver, or the Edge Up account. 

In other words, it's an account for someone who does not frequent MSE and is not that bothered if they would be better off with a different bank account.

For me, the cashback on household bills would just cover the £5 monthly fee. I have the no longer available 123 lite with whic I get just over  £9 a month in cashback.

The debit card cashback can be bettered with Chase debit card purchases and it has the same travel benefits as Santander. 

Instant access savings with Chip at 4%

If I were to use the Edge account instead of Chase and Chip, I would be about £200 a year worse off.

I think it's designed for people don't want lots of different bank accounts. They may well frequent MSE but decide they only want one account for convenience. Whether Edge or Edge Up is the best account depends on how much interest and cashback you could generate. There are other factors too - some people want an account which they can access through a branch. Some people need an account that cheques can be paid into. If Mr Typical is paid £2,500 a month after tax, has £500 of qualifying bills, spends £400 a month in supermarkets and £150 a month on petrol, keeping a typical balance of £3,000 in his account, is there a better account for him? I'm not sure there is, even with the fees. 

I think Santander have tried to design an account that's at least as attractive as other banks' current accounts, and I think they've succeeded. Obviously the account is not going to be as profitable as using multiple current/savings providers in parallel - but some people don't want the hassle of doing this. Some people aren't organised enough to do this and would end up with bounced DDs. 

boingy

Yorkshire BS are just about to launch a competing account. They're calling it the Eh Up account. 
Sorry. I'll get me coat...

km1500

for me it is irrelevant what interest rate they offer or how good the account is because of their Hotel California business model i.e you can put as much money into their  accounts as you want but try and get it out and you will have your account frozen

ZeroSum

TheBanker said:

RN61 said:

Perhaps this will encourage Chase either to allow their 3.5% savings account to be set as funding source for their debit card, which only allows current account to be set at present. Or, pay 3.5% on current account balances!

I wouldn't have thought so. The Chase proposition isn't really comparable with Santander. For a start Chase is free, whereas Santander charge a fee. And Chase's cashback is on all debit card purchases, whereas Santander's is on some debit card purchases and some direct debits. 

I doubt many people will be closing their Chase accounts to move to a Santander Edge Up. In fact these two accounts could live happily side by side - I said on another account that I tend to use Chase like a pre-paid card and I think lots of others will do the same.

Chase cashback isn't on 'all' debit card payments. Yes its loads more conclusive than Santanders offering but there is a long list of exclusions, 

sandy700

My main account is a BoS Vantage account which all it pays me to have it is the interest on about £1000 and to be honest there is no longer any incentive to keep it.

If I transfer my DDs to it and use the debit card for at least £500 a month instead of my Tesco credit card and keep £1000 a month min I could be getting £8 plus a month.

Better than the Tesco points on £500 and £1.50 odds interest a month.

And there is a branch in my town, BoS are closing their branch.

WillPS

sandy700 said:

And there is a branch in my town, BoS are closing their branch.

For how long is anybody's guess though. Expect all the main banks to reduce their branch network down to cities and major towns only soon - even then it's not guaranteed, Nottingham no longer has a TSB for example.

[Deleted User]

Futuristic said:

The account isn't bad, people have also missed the fact it has 0 fx fees incl cash withdrawals and there are quite few countries with Santander branches. It's certainly not a bad offering, quite surprising how good it is actually for a big bank.

The savings rate isn't terrible but ofc no where close to the other random name competitors. If you want a bank - all in one without having to sign up to different providers its a good overall acc imo.

All Santander current accounts (using a debit card) now get free access to Santander ATMs worldwide. Only extra is that card spending is forex free but a number will have their legacy Zero credit card or others such as Chase/Starling.

where_are_we

"Our new current account will leave you feeling good"

Really! Compared to our 123lite where we get much superior cashback averaging £8 a month with a £2 a month fee, keep a minimum balance and get at least 4% with whatever easy access account is "flavour"of the week and get 1% cashback on most purchases (Chase). How does that make us feel good? The cat with the sunglasses in their promotion looks like a "spiv" if ever I saw one!

The worry is that the days of the 123 lite are numbered.