Santander is offering a "valuable" savings account with an "attractive" interest rate with extra cashback incentives attached.
The bank's premium current account offering customers monthly cashback of up to £20, although it carries a £17 monthly fee.
According to Santander, the Edge Explorer account combines financial rewards with a comprehensive insurance package aimed at families.
Account holders can earn cashback through everyday spending and household bills, while also accessing a linked savings product with competitive interest rates.
Anthony Warrington, head of current accounts at Santander UK, said the product was designed to give "customers and their families with cover for some of life's 'what ifs', whether that's a lost phone or a holiday that doesn't quite go to plan".
The launch puts Santander in direct competition with similar packaged accounts offered by rival banks. The cashback structure is split between two categories. Customers earn 1 per cent cashback on qualifying debit card purchases, capped at £10 monthly.
An additional £10 monthly cashback applies to qualifying household bills paid through direct debit.
Account holders also gain exclusive access to Santander's Edge Saver account, which pays six per cent AER on deposits up to £4,000.
Account holders can earn cashback through everyday spending
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The six per cent rate includes a temporary bonus valid for the first twelve months after opening.
Notably, the Edge Explorer account also removes foreign exchange fees on overseas purchases, while international money transfers through Santander incur no charges from the bank.
These financial incentives are intended to offset the monthly fee, potentially leaving customers with a net gain of £3 per month before accounting for savings interest and insurance benefits.
The included insurance package covers worldwide family travel and mobile phone protection.
Joint accounts require both parties to share the same residential address to qualify
| PAVehicle breakdown assistance applies across the UK and Europe, and account holders receive 24-hour remote GP consultations within the UK.
Eligibility is limited to UK residents aged 18 to 73. Only one Edge Explorer account is permitted per person.
Joint accounts require both parties to share the same residential address to qualify for the account and its insurance benefits.
Rachel Springall, a finance expert at Moneyfactscompare.co.uk, advised that customers consider which perks offer the most value.
She said: "It is essential customers take time to pick which benefits would be most valuable to them."
Ms Springall also recommended reviewing protection levels when deciding whether such products meet individual needs.
She highlighted the account's financial appeal, noting: "The account charges a £17 monthly fee, but this can be wiped away from the attractive cashback offer, where customers can earn up £20 from both debit card spending and through eligible household bills."
She added: "On top of this, the account provides access to the Edge Saver account which pays an attractive six per cent AER."
The finance expert said bundled incentive accounts could be economical for some consumers, but stressed that personal circumstances should guide decision-making.
Her analysis indicates that customers who maximise cashback could effectively remove the monthly fee, making the combination of rewards and high-interest savings particularly valuable for active users.
LATEST DEVELOPMENT:
Nationwide FlexPlus is currently paying switchers £175
| NATIONWIDE BUILDING SOCIETYMs Springall suggested an alternative for comparison, saying: "As an alternative, the Nationwide FlexPlus offers a comprehensive package of insurance add-ons and is currently paying switchers £175."
The FlexPlus account charges £18 per month, one pound more than Santander's Edge Explorer, and includes worldwide travel insurance, mobile phone protection, and vehicle breakdown assistance covering the UK and Europe.
Nationwide customers also receive preferential access to the building society's other financial products.
For those considering a switch, Ms Springall said: "Switching current accounts is quick and easy to do and the Current Account Switch Service (Cass) moves over both any balance and redirects both standing orders and direct debits to a new account."
The £175 switching bonus from Nationwide could cover roughly ten months of account fees.