Santander Edge customers will no longer enjoy 1% cashback on supermarket, fuel, and travel spending from 9 September.
Customers who have Santander Edge Up and Edge current accounts will only be able to earn 1% cashback on selected household bills when they pay with direct debit.
At present, Santander Edge customers can claim up to £20 cashback a month on their spending, split between £10 on bills and £10 on everyday spending, while Edge Up customers can claim up to £30 cashback, split between bills and everyday spend.
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Under the new changes, Edge customers will only be able to claim £10 a month cashback on bills, and Edge Up customers will be limited to £15 a month.
In order to hold Santander’s Edge and Edge Up accounts, customers must pay a monthly fee to maintain the account. This is £3 a month for Edge and £5 a month for Edge Up.
The climbdown comes just after Chase bank reduced its cashback offer on all its debit card spending to just 1% on UK groceries, everyday transport, and fuel.
The scaled back cashback will make the Santander Edge account a less attractive option for customers who value perks with their banks.
The Santander Edge customers do qualify for an attractive savings account, with an interest rate of 6% AER variable (inclusive of a 2% boost for the first 12 months) on balances up to £4,000.
The Santander Edge Saver is among the accounts with the best savings rates on the market right now. However, savers would be wise to work out if the interest they will earn on their balance in the account will outpace the £3 or £5 monthly account fee.
Santander is also closing its 123 Lite current account.
The account currently costs £2 a month and pays up to 3% cashback on bills, but from 21 August customers will be moved to the Everyday current account (which does not award cashback).
What will Santander Edge customers still earn cashback on?
While cashback on supermarket, travel, and fuel will be axed from 9 September, Santander Edge customers will still be able to claim cashback on some spending.
Customers will still be able to earn cashback on most of their household bills, including:
- Broadband and paid-for TV
- Council tax
- Energy
- Mobile phone and landline
- Water
Spending with most major suppliers is eligible for cashback, but not all suppliers are covered. If you are in doubt, check Santander’s website for the full details.
What will Santander Edge customers not be able to earn cashback from?
Until the rules change in September, Santander Edge and Edge Up customers can earn cashback on a host of everyday expenditure.
The bank gives cashback when you spend on:
- Supermarkets
- Trains
- Buses
- Electric Vehicle charging
- Petrol and diesel
Remember, the cashback restriction will come into effect on 9 September, so customers can still make the most of the offer until then.
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