Current account customers who switch to Santander can earn five per cent interest on the balance, in addition to a £100 cash incentive for switching.
From 28 June 2010, customers can get a £100 'summer incentive' when they switch their main bank account to a Santander current account.
Current account customers can also earn five per cent on their in credit balances, up to £2,500 for 12 months.
The interest and the cash incentive combined add up to a potential £225 that consumers can pocket if they switch.
Despite current account comparisons being readily available on the internet, many consumers remain reluctant to switch. Santander has found that 77 per cent of people are considering changing to a new current account provider, but that millions will not take the final step to get a better deal because they think it will be too much hassle.
To combat this, Santander has a dedicated Account Transfer Service, and promises a smooth and easy process, and offers to refund any bank charges customers might incur during the switching process; overdrafts are interest free for the first four months, and it will match existing overdrafts up to £5,000.
Commenting on the new offer, Helen Bierton, head of Santander current accounts, said: "We are offering a fantastic opportunity for people to get their finances into shape this summer and switch to one of the best current accounts on the market - that actually pays them."
She added: "Millions of people have also not updated their current account with many believing it's not worth it, both in time and money. We want to encourage consumers not to settle for less and to shop around for the best current account deal."
Michelle Slade, personal finance expert from Moneyfacts, commented: "Switching your current account is an easy way of making sure you are getting value for money. This offer by Santander gives those switching a double boost with the £100 cash bonus and the highest interest rate available on a current account. This is definitely an offer to act on."
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