From today, 10 July 2018, Santander will introduce a new fee structure for overdrafts which will remove or reduce unarranged overdraft fees for all customers.
All unarranged overdraft fees will be removed completely from the 123 Current Account, the 123 Lite Current Account and the Select and Private current accounts providing additional benefit to four million Santander adult current account customers who pay a monthly account fee for the benefits these accounts provide.
On other personal current accounts which carry no monthly account fees, such as the Everyday Current Account and the Student range of accounts, the Maximum Monthly Charge (MMC) – or the monthly unarranged overdraft fee cap – will be almost halved from £95 to £50. This monthly cap covers all unarranged overdraft fees, including paid and unpaid item fees. In addition since February 2018 all customers are automatically registered for unarranged overdraft alerts.
Santander's Basic Current Account will continue to be available to new and existing customers. This account has no overdraft fees and no monthly account fee.
Reza Attar-Zadeh, Head of Customer Proposition and Experience at Santander UK said: “These changes mean our four million 1|2|3, Select and Private current account customers will no longer incur unarranged overdraft fees. For other customers the cap on these fees will be almost halved ensuring that all our current account customers can benefit from overdraft caps that are among the lowest in the market."
Arranged overdraft fees remain the same for all accounts where they apply1. The £12 overdraft usage fee buffer will also remain in place and customers will still be able to credit their account by 4pm to avoid overdraft fees. To further support customers all adult current account customers are automatically registered for free unarranged overdraft alerts2.
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Notes to editors
- Arranged overdraft fees for adult current accounts are £1 per day for usage up to £1,999, £2 per day for usage from £2,000 to £2,999.99 and £3 per day for £3,000 or more.
- Santander offers a range of other free SMS and email alerts so customers can stay on top of the transactions on their account, such as when the account balances falls below a set amount (e.g. £100) or if a payment over a certain amount (e.g. £50) is made from the account.
Santander UK is a financial services provider in the UK that offers a wide range of personal and commercial financial products and services. It has brought real competition to the UK, through its innovative products for retail customers and relationship banking model for UK SMEs. At 31 March 2018, the bank has c19,500 employees. It serves around 14 million active customers, via a nationwide branch network, telephone, mobile and online banking; and 64 regional Corporate Business Centres. Santander UK is subject to the full supervision of the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA) in the UK. Santander UK plc customers are protected by the Financial Services Compensation Scheme (FSCS) in the UK.
Banco Santander (SAN SM, STD US, BNC LN) is a leading retail and commercial bank, founded in 1857 and headquartered in Spain. It has a meaningful market share in 10 core countries in Europe and the Americas, and is the largest bank in the euro zone by market capitalization. At the end of 2017, Banco Santander had EUR 986 billion in customer funds (deposits and mutual funds), 133 million customers, 13,700 branches and 200,000 employees. Banco Santander made attributable profit of EUR 6,619 million in 2017, an increase of 7% compared to the previous year.
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