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Important Changes to Overdrafts

Summary of changes

When do the changes apply from?

Frequently asked questions


Summary of changes

From 16th March 2011, we will be making changes to our overdrafts in order to simplify fees and make using your overdraft more transparent and easy to understand.

If you are an existing Santander Current Account customer or have what used to be an Alliance & Leicester current account, we will be writing to you explaining what the changes are and how you might be affected.

We've explained the changes below. You can also find out answers to other questions you may have in our Frequently asked questions section as well as some example charging scenarios

> What is changing?

> What are the new fees?

> How might this affect me?

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What is changing?

  • We will no longer charge you debit interest for using your Arranged or any Unarranged Overdraft.
  • Instead, we will charge you Daily Arranged Overdraft fees and Daily Unarranged Overdraft fees.
  • We will put a cap on these fees in each monthly statement period
  • We will no longer charge you a monthly fee for using an Unarranged Overdraft.
  • Paid and Unpaid item fees will still apply each time you present a transaction and you do not have enough funds in your account to cover the amount in full, however the value of these fees will change.
  • We will no longer offer the interest and fee-free Arranged Overdraft facility on Reward, Travel and Family Current Accounts.

There are no changes to the Zero Current Account. We charge interest if you use an Arranged or Unarranged Overdraft. We do not charge fees for Arranged Overdraft and Unarranged Overdrafts. The interest rate you pay on any overdraft has not changed.

From 16th March 2011, we will add details of these changes into Section B or our General Terms and Conditions and Interest Rates and Fees Information.

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What are the new fees?

Your existing account

Daily Arranged Overdraft Fees

Daily Unarranged Overdraft Fees

Paid Item Fees

(note 3)

Unpaid Item Fees

(note 3)

Preferred In Credit Rate Account, Premier Direct, Premier and Current Accounts

0.50 each day (capped at 20 days each monthly statement period)

5 each day (capped at 20 days each monthly statement period)

25 for

each paid transaction

25 for

each unpaid

transaction

Preferred Overdraft Rate Account

0.50 each day (capped at 15 days each monthly statement period)

Reward, Travel and Family (note 1), Premier 50 and Premier 21Current Accounts

0.50 each day (capped at 10 days each monthly statement period)

5 each day (capped at 10 days each monthly statement period)

5 for

each paid

transaction

10 for

each unpaid

transaction

Premium Current Account

No charge

Student, Santander University Account, Post Graduate and Graduate Accounts

Basic Account, Instant Plus Account and International Student Account

This does not apply. Arranged Overdrafts and Unarranged Overdrafts are not available with these products.

25 for

each unpaid

transaction

Choice Account

(note 2)

0.50 each day (capped at 10 days each monthly statement period)

5 each day (capped at 10 days each monthly statement period)

No charge

If you would like to confirm any details about your account, please log into your account using our Online Banking facility, visit your local branch or call us.

Note 1: We will no longer offer the interest and fee-free Arranged Overdraft facility on these products. This will apply from 16th March 2011.

Note 2: We will reduce the monthly account fee for a Choice Account from 10 to 5. This will apply from 16th April 2011.

Note 3: From 16th April 2011, Paid and Unpaid Item Fees will now apply for transactions below 10 in value on accounts which were formally Alliance & Leicester.

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How might this affect me?

Here are some examples of how the new overdraft fees will work. We have included these examples to help you understand what these changes might mean to you depending on the way you use your account.

You have a Preferred In Credit Rate Account and you use an Arranged Overdraft of 500 for two days in a monthly statement period.

  • You will pay 1.00 Daily Arranged Overdraft Fees (0.50 each day for two days).

You have a Preferred Overdraft Rate Account and you use an Arranged Overdraft of 1,000 for 25 days in a monthly statement period.

  • You will pay 7.50 Daily Arranged Overdraft Fees (0.50 each day for 15 days, as we cap the fees at 15 days each monthly statement period).

You have a Preferred Overdraft Rate Account and you try to make a payment which would take your account 150 beyond any available funds. On this occasion we agree to make the payment, and you have an Unarranged Overdraft for two days.

  • You will pay 10 Daily Unarranged Overdraft Fees (5 each day for using your Unarranged Overdraft for two days).
  • You will also pay a Paid Item Fee of 25 for making a payment beyond your Arranged Overdraft limit.

You have a Reward Current Account and you try to make a payment which would take your account 300 beyond the Arranged Overdraft limit. On this occasion we do not agree to make the payment.

  • You will pay an Unpaid Item Fee of 10 for trying to make a payment that was returned unpaid.
  • Daily Arranged Overdraft Fees will also apply for the period where an Arranged Overdraft was used

For further details, please refer to the Important Changes to overdrafts - Notice of a change to Current Account Terms and Conditions. You can also visit your local branch or call us to speak to an Adviser.