Which account - Edge or Edge Up?

overload99

We're looking at switching our bank account to one of the following Santander accounts:

The Edge account doesn't pay any interest on account balance but you can have a linked savings account at 7% on balances up to £4000. As there's two of us, this could be £8000.

The Edge Up account pays 3.5% interest on any account balance up to £25,000 but you can't open the linked savings account with it.

In the short to medium term, we will have a balance of approx £25,000 as we've just had an advance on our mortgage to get some work done so we'll have the cash until the works are completed.

In the longer term and under normal circumstances, our bank balance is probably somewhere around £1-2k.

So, would we be better off with:

- the Edge Account at 0% on our monthly £1-2k but 7% on up to £8000 or 

- the Edge Up account with no savings account but 3.5% on £25,000 in the short to medium term and £1-2k in the longer term?

Hopefully that all makes sense.

steven141

You could open an Edge current account with the 7% saver and also open a Cahoot Sunny Day Saver 5.2% up to £3000 https://www.cahoot.com/products-and-services/cahoot-sunny-day-saver it is owned by Santander as well but won’t show in the app.  

You could also then open a Chase current account https://www.chase.co.uk/gb/en/ which allows you to have access to a 4.1% easy access saver and you also get 1% cashback on up to £15 on your spending if you pay in a certain amount each month I think £1500 or any other savings accounts with less known brands here https://www.moneysavingexpert.com/savings/savings-accounts-best-interest/. 

If you just want it all in one app it may be worth just going for Edge Up and then downgrading at a later date.

TheBanker

Is there a reason you need to hold the £25k with Santander? The Edge Up rate can easily be beaten by other instant access savings accounts. The Edge Saver is competitive but you're limited to £4k each. 

Remember both accounts charge a fee (although there are some workarounds to avoid this on the Edge account if you only want the savings account) - will you generate enough cashback through your bills/spending to cover the fee?

overload99

TheBanker said:

Is there a reason you need to hold the £25k with Santander? The Edge Up rate can easily be beaten by other instant access savings accounts. The Edge Saver is competitive but you're limited to £4k each. 

Remember both accounts charge a fee (although there are some workarounds to avoid this on the Edge account if you only want the savings account) - will you generate enough cashback through your bills/spending to cover the fee?

Thanks for the reply. No, it doesn't have to be Santander. We bank with them at the moment so thought it would just be easy to switch to one of their accounts.