UK Financial Services - Case Study on Borrowing - Coursework Example

Santander UK is an independent division that manages its own operations with a local management team. The bank has its headquarters in London and was opened in 2011. Santander’s 123 product range was ranked as the third best banking service in UK in 2013. During the same year, customers ranked the bank as the best financial service provider in UK in terms of customer satisfaction. The Nationwide BS is also an alternative and is a British financial organization ranked as the largest building society in the world.

Although the institution specializes in mortgage loans and savings, it also provides services such as credit cards, bank accounts as well as insurance services. In February 2014, the company’s credit rating stood at A2 according to Moody and A with Fitch Ratings (Wachter, Cho & Tcha 2014, p.46). Santander UK offers The 123 Credit Card that allows customers to use the credit card along other loyalty cards. Additionally, the card allows users to cashback faster with up to three family members who reside near the client’s address.

Similarly, the card is contactless and its users can make purchases wherever they come across the contactless symbol. When a customer pays his or her balance in full and on time at the end of each month, the service provides them with up to 56 days during which they can make interest free purchases (Rezaee 2011, p.124). The Capital One Aspire Elite credit card accommodates users who earn more than £50,000 per annum. The card gives a 5% cashback on all purchases done within the first 99 days of opening the account.

However, this cashback is limited to a maximum of £200. After the above period, users earn 1% cashback for all successive purchases up to a total of £15,000 that increases to 2% for purchases ranging from £15,000 to £50,000. Additionally, a 1.35% cashback is given to users who spend more than £50,000 per annum. However, these rates are