Santander

Who they are

Santander UK is a large retail and commercial bank based in the UK and a wholly-owned subsidiary of the major global bank Banco Santander. Its roots in Britain go deep. The bank has its origins in three constituent companies - Abbey National, Alliance & Leicester and Bradford & Bingley - all former mutual building societies. Santander purchased Alliance & Leicester in 2008, followed by the branches and savings business of Bradford & Bingley, and the combined businesses were rebranded as Santander in January 2010.

Today the bank is one of the larger players on the UK high street. It serves around 14 million active customers, including 7 million digital customers, via a nationwide branch network, telephone, mobile and online banking. It also operates Cahoot, an online savings brand. Cahoot is a division of Santander UK plc , which matters for FSCS purposes - more on that below.

FSCS protection - and the Cahoot overlap

Your eligible deposits with Santander UK plc are protected by the FSCS up to £120,000 per person. The DepositScout data confirms the Edge Saver carries this same £120,000 protection limit.

One thing worth knowing: as Cahoot is part of Santander, the FSCS limit is across both brands. So if you hold savings with both Santander and Cahoot, those balances are pooled together for protection purposes. If your combined deposits across both brands exceed £120,000, you may want to spread the excess to a different banking licence.

Savings accounts

Santander's main savings offer for switchers is the Edge Saver, which is linked to their Edge current account. The headline rate is 6.00% variable, but it is worth understanding how that figure is made up. It includes a 2.5% fixed bonus for the first 12 months - after which the rate drops to 3.5% variable. You can open it with as little as £1, and access is instant.

This is a regular saver in structure. Rates at this level can look eye-catching compared with easy access accounts, but because deposits are built up gradually over the year, the actual interest earned tends to be lower than the headline suggests. The 12-month drop is also significant: set a reminder well before the anniversary so you are ready to reassess.

Switching to Santander

The Edge current account carries a £3 monthly fee, so it is worth checking whether the package stacks up for you. On the upside, Santander is currently offering a £180 cash bonus for switchers who use the Current Account Switch Service, pay in £1,500 and set up at least two active direct debits within 60 days of opening.

The account also pays 1% cashback up to £10 per month on household bills paid by direct debit - covering council tax, energy, water, broadband, mobile and home phone. And the linked Edge Saver runs at 6% variable for the first 12 months on balances up to £4,000.

Whether the maths works for you depends on your direct debit spend. If your monthly household bills are high enough to approach the £10 cashback cap, the fee largely pays for itself - before you count the saver rate or the switch bonus.

Is it right for you?

Santander suits people who want one place for their everyday banking and a linked savings boost, rather than those hunting the outright best standalone savings rate. The branch network and established app will appeal if you value having a physical bank as a backstop.

The key question is always the ongoing value after year one: the bonus on the Edge Saver drops away, and the £3 monthly fee continues regardless. Do the sums based on your own bill spend before committing.

Rates and bonus terms change, so check the live figures shown on this page before applying - they are updated whenever Santander moves its numbers.