Major bank launches market-leading current account with 4% interest and £20 cashback a month

A MAJOR high-street bank has launched a new current account with a market-leading easy-access savings account.

The move comes as firms continue to battle it out to offer customers the best savings rates.

Santander is offering new 'Santander Edge' current account customers 4% interest on balances up to £4,000 in a brand new easy-access linked savings account.

It would mean that if a customer saved £1,000 annually, they'd expect to gain £40 over 12 months.

New customers will also get up to £20 in cashback on everyday spending.

Customers will get 1% cash back on debit card spending on transport and groceries - capped at £10 a month.

Account holders will earn cashback on their debit card purchases at:

• Service stations and UK petrol stations
• Automated fuel dispensers
• Suburban and local commuter passenger transport including ferries
• Passenger rail journeys
• Bus journeys
• Electric vehicle charging points
• Supermarkets and grocery stores
• Convenience stores
• Food markets
• Speciality food stores
• Vending machines

Customers will also get 1% cashback on household bills paid via direct debit - also capped at £10 a month. These include:

• Council Tax bills (including Rates in Northern Ireland) 
• Gas and electricity bills 
• Water bills 
• Mobile and home phone bills, broadband and paid-for TV packages

But there's a catch and to take advantage of the cashback offers with the new current account, as well as its linked saver, customers will need to foot a £3 a month fee.

You should factor in this fee before you decide whether the account is right for you.