TSB takeover by Santander. Better to switch now with incentive or wait for take-over?

NovBee

I have an active, packaged current account with TSB (mobile phone and travel insurance plus car breakdown included for a fee). Should I switch to Santander's Edge account now, which is cheaper but with the same benefits, or will there be a bonus or similar paid to TSB account holders when Santander takes them over some time this year?

steven141

Usually there won't be a switching bonus but there is nothing to stop you switching to another bank for a switching bonus now. Santander bonuses tend to be quite rare. They have done quite a few but they aren't as frequent as some other banks. If Lloyds suits your needs they are currently doing £250 if you start the switch by 3rd February.

flaneurs_lobster

What I'd do.

Open another current account with TSB.
Switch this current account to a new Santander Account with the benefits package you want (Edge Explorer?). 
Pocket £200 switch bonus (if you comply with the DD and payment requirements).
Downgrade your TSB account to cancel the package extras.
Sit tight on this account in case of any takeover bonus.

MyRealNameToo

TSB is a bank owned by Banco Sabadel, its not a mutual going to non-mutual etc, its unlikely there will be anything given to customers. The current shareholders will receive the above share price value as agreed in the deal and inevitably some Santander staff will get a bonus for having made the deal happen. 

No harm in keeping the old account but dont be surprised if it simply gets rebranded to Santander and thats it. 

EarthBoy

There almost certainly won't be any bonus when Santander takes over TSB.  The building societies which became banks used to pay bonuses, but only to bribe the members into voting in favour of the conversion.  
TSB isn't owned by its customers, so they won't have any say in the takeover.  It's owned by the Spanish bank Sabadell, so why should they pay the customers anything?
Virgin Money customers didn't get anything when it was taken over by Clydesdale Bank, and the whole group rebranded to Virgin Money.  They didn't get anything when it was taken over by Nationwide, either.