Spanish-owned bank Santander has launched an online self-invested personal pension (SIPP), as it targets the pre-retirement market.

The new SIPP will offer customers access to up to 850 funds, as well as four ready-made funds chosen by the bank.  

The SIPP will also offer cashback of up to £1,000 to customers who sign up by the spring of next year with the amount depending on the amount invested.   

The bank said the SIPP will allow customers to consolidate multiple pensions together, and access them through the bank’s app.

Fees for the SIPP start at 0.35% on balances up to £50,000, falling to 0.20% on balances between £50,001 to £500,000, and 0.10% on balances above £500,001. 

The bank also offers digital investment advice at £20 or person-to-person advice starting at £500.

To qualify for cashback customers must invest by 25 April 2025, and the money will be paid into their accounts at the end of July.

They will earn £50 for investing between £5,000 to £9,999, rising in increments to £1,000, with the higher amount paid out to those who invest more than £100,000.

Ashlin Brack, UK head of digital investing at Santander, said: “We want to support our customers through all stages of life, helping them save and invest so they can live life to the fullest.”

He said the bank has designed the new SIPP “to make managing a pension simple and give people greater control over their retirement.” 

SIPP customers can either pick their own funds to invest in or allow their provider to choose for them. To qualify, customers must be at least 10 years away from retirement.