Summary of changes to terms and conditions

We’re making changes to the terms and conditions of your account

We're making a number of changes to the General Terms and Conditions and Key Facts Document of your account. We're letting you know early, so you have plenty of time to understand the changes or contact us if you have any questions. 
 
Summary of the main changes

A number of changes impacting your Santander business current and/or savings accounts will take place in the next few months.

From 6 April 2020, we’re:

  • changing what we charge for Arranged Overdrafts;
  • removing Unarranged Overdraft interest charges;
  • removing Unpaid Item fees;
  • removing Paid Item fees; and
  • removing in-credit interest from the Business Current Account (in-credit interest will remain on the 1I2I3 Business Current Account).

There are also other changes we’re making to services and terms outlined in our General Terms and Conditions and Key Facts Documents to define or clarify existing terms. Some of these aim to  improve your understanding of the document without changing the meaning of the terms by doing this. This includes tidying up certain terms, as well as how we display and describe certain information. These changes are set out in more detail below.
Unless we state otherwise the changes apply from 5 May 2020.

Changes for business current account customers

1. We’re changing the amount we charge for Arranged and Unarranged Overdrafts
From 6 April 2020, we’re changing the amount we charge for Arranged Overdrafts and removing Unarranged Overdraft interest charges and the fee for allowing a payment due to lack of funds (Paid Item fee). The fee for refusing a payment due to lack of funds (Unpaid Item fee) will not be charged on any transactions from 10 December 2019.

This means that you won’t pay any fees for using an Unarranged Overdraft or for us either allowing (Paid Item fee) or refusing (Unpaid Item fee) a payment when your account has insufficient funds.

If you go over your Arranged Overdraft limit you won’t be charged any interest on the balance above your limit – it will only apply up to your Arranged Overdraft limit. We can’t guarantee that a payment will go through if this will take your balance below zero or beyond your Arranged Overdraft limit. To ensure all your payments are made, it is important to keep your account balance in credit or within your Arranged Overdraft limit.

The table below shows the overdraft changes:

Description

1|2|3 Business Current Account & Business Current Account
Up to and including 5 April 2020

1|2|3 Business Current Account & Business Current Account
From 6 April 2020
Business Everyday Current Account
Up to and including 5 April 2020

Business Everyday Current Account
From 6 April 2020

Treasurer's Current Account & Client Current Account
Up to and including 5 April 2020
Treasurer's Current Account & Client Current Account
From 6 April 2020
Arranged Overdraft annual fee 1.00% of the agreed overdraft (minimum fee £50) 1.00% of the agreed overdraft (minimum fee £50) 1.00% of the agreed overdraft (minimum fee £50) 1.00% of the agreed overdraft (minimum fee £50) N/A N/A
Arranged Overdraft interest rate 5.75%1 EAR (variable) 10.00% EAR (variable) 6.65%3 EAR (variable) 25.00% EAR (variable) N/A N/A
Unarranged Overdraft interest rate 25.75%2 EAR (variable) No interest 29.50% EAR (variable) No interest 29.50% EAR (variable) No interest
Paid item fee No fee No fee £30 No fee £30 No fee
Unpaid item fee £154 No fee £324 No fee £324 No fee

1 Bank of England Base rate plus 5.00%.
2 Bank of England Base rate plus 25.00%.
3 Bank of England Base rate plus 5.90%.
4 Unpaid Item fee will not be charged on any transactions from 10 December 2019

Overdraft pricing examples (effective 6th April 2020)

What would be the estimated interest charged if I borrowed £1,000 through my Arranged Overdraft over 15 days?

Product Up to and including 5 April 2020
Interest rate

Up to and including 5 April 2020
Interest charged

From 6 April 2020
Interest rate
From 6 April 2020
Interest charged
1|2|3 Business Current Account 5.75% EAR (variable) (Bank of England base rate +5%) £2.36 10.00% EAR (variable) £4.11
Business Current Account 5.75% EAR (variable) (Bank of England base rate +5%) £2.36 10.00% EAR (variable) £4.11
Business Everyday Current Account 6.65% EAR (variable) (Bank of England base rate +5.9%) £2.73 25.00% EAR (variable) £10.27

What would be the estimated cost if I entered an Unarranged Overdraft of £250 for 15 days?

Product Up to and including 5 April 2020
Interest rate
Up to and including 5 April 2020
Cost
From 6 April 2020
Interest rate
From 6 April 2020
Cost
1|2|3 Business Current Account Unarranged Overdraft Interest: 25.75% EAR (variable) (Bank of England base rate + 25%) £2.65 Unarranged Overdraft Interest: 0.00% £0
Business Current Account Unarranged Overdraft Interest: 25.75% EAR (variable) (Bank of England base rate + 25%) £2.65 Unarranged Overdraft Interest: 0.00% £0
Business Everyday Current Account Unarranged Overdraft Interest: 29.50% EAR (variable) £3.03 Unarranged Overdraft Interest: 0.00% £0

What would be the estimated cost if I entered an unpaid item fee?

Product Up to and including 9 December 2019
Unpaid item fee cost
Up to and including 9 December 2019
Cost
From 10 December 2019
Unpaid item fee cost
From 10 December 2019
Cost
1|2|3 Business Current Account Unpaid item fee £15 £15.00 Unpaid item fee £0 £0
Business Current Account Unpaid item fee £15 £15.00 Unpaid item fee £0 £0
Business Everyday Current Account Unpaid item fee £32 £32.00 Unpaid item fee £0 £0

We offer a range of services, tools and other borrowing options to help you prevent or minimise charges

  • These services include Online and Mobile Banking as well as free overdraft text and/or email alerts. You can choose to receive these alerts to notify you before your account is charged so that you have plenty of time to pay money in. You can also set up additional alerts to advise you when your balance has fallen below a set limit.
  • You can also reduce or cancel your Arranged Overdraft facility at any time. If you cancel your Arranged Overdraft you must repay the money that you have borrowed before the cancellation can be completed. You must also pay all the fees and interest applicable to your overdraft at that time.
  • Overdrafts are only suitable for short-term borrowing. We offer other borrowing options such as credit cards or unsecured business loans if you feel that an Arranged Overdraft is no longer right for you.

There are some ‘frequently asked questions’ below and more information on santander.co.uk/business to help answer any questions you may have.

2. Business Current Account in-credit interest
From 6 April 2020, we’re removing in-credit interest from the Business Current Account (in-credit interest will remain for the 1I2I3 Business Current Account). This means the account won’t pay interest on any credit balances held within the account, from this date.

What would be the estimated interest earned after 12 months based on an account balance of £10,000?

  AER/Gross rate Interest earned
Up to and including 5 April 2020 0.10% £10
From 6 April 2020 0.00% £0

It’s important to consider if the account is still right for you as the changes could mean that you earn less in interest each month.

Changes for business current and savings account customers

3. Interest and fees on Sundays and Christmas Day
We use your account balance to determine any interest or fees that are applicable to your account. Currently any deposits or withdrawals made on a working day, Saturday or Bank Holiday (except Christmas Day) are processed the same day but some deposits or withdrawals made on a Sunday
or Christmas Day are not processed until the next working day.

Deposits or withdrawals made on any day during which we process a transaction will be treated as received that day. This means any applicable credit interest and/or debit interest will be applied on a Sunday or Christmas Day, if the transaction is processed on that day.

4. Change to foreign currency conversion fee for cash withdrawals and debit card payments
The foreign currency conversion fee for cash withdrawals and debit card payments in a foreign currency will change from 2.75% to 2.95% of the value of the withdrawal or payment.

The following foreign transaction fees were removed on 10 December 2019:

  • Cash withdrawal fee (including cash machines, purchase of travellers’ cheques or foreign currency at another bank, bureau de change or other outlet displaying the Visa or Mastercard sign abroad), was 1.50% on each transaction, now 0.00%.
  • Single Euro Payments Area (SEPA) – non-urgent euro transfer, was £15.00, now £0.00.

5. Foreign currency card payments and cash withdrawals
When you make a card payment or cash withdrawal in a foreign currency, it:

  • will be converted into pounds using the Visa or Mastercard exchange rate as at the date we receive the payment instruction to debit your account (which may not be on the same day that you authorised the payment);
  • may incur a Santander commission fee based on the amount of the transaction we receive in a foreign currency to convert to sterling; and
  • may incur commission fees imposed by the retailer or bank that carries out the card payment or cash withdrawal if you select for them to carry out the conversion from the local currency to sterling.

We’ll send you regulatory alerts where we’re required to when you make a card payment or cash withdrawal overseas.

6. Paying money in and automatic payments like Direct Debit and standing orders
We’re clarifying the cut-off time for you to put money into your account to ensure you avoid or reduce overdraft charges each day. If your account is using an overdraft you have until 8pm to bring your account into credit to avoid charges for that day.

We’ve also amended our terms to clarify that automatic payments are taken from your account at the beginning of the working day they are due.  This means that if you don’t have available money in your account at this time, we’ll try to take the payment again later that afternoon (and for
standing orders, again in the morning of the following working day).

To ensure the payment is made, you’ll need to move enough money into your account or have an Arranged Overdraft sufficient to cover the payment, before 4pm (or 10.45am the next working day for standing orders).

7. Cash deposit limit and billing period
In our current account Key Facts Documents we set out when your monthly cash deposit limit resets for your account. The reset coincides with your monthly billing cycle and the Key Facts Documents will be revised to reflect this.

8. Confirmation of Payee
When sending money to accounts in the UK, you’ll now need to provide us with the name of the person or business you want to pay, along with the account number and sort code.

9. Business and personal address
We’ve amended the General Terms and Conditions to require you to notify us of your changes to either your business or personal address.

10. Data Protection Statement
We’ve made some changes to make the Data Protection Statement easier to understand.

11. Requesting an Unarranged Overdraft
You’ll be automatically treated as having requested an Unarranged Overdraft if you don’t have enough available money in your account, or enough unused Arranged Overdraft with us, and:
(a) we choose to allow a payment despite there being insufficient funds in your account;
(b) we can’t, for any reason, stop a payment you’ve made;
(c) a payment into your account is later returned unpaid; or
(d) we apply charges to your account.

This change will take effect on 6 April 2020.

12. Charging of fees
We’ve simplified the information about fees and charges in some of our savings Key Facts Documents.

What to do next

Most of the changes will take effect on 5 May 2020 (unless otherwise stated) so you have time to decide whether your account is still right for your business.

  • If you keep using your account, we’ll automatically make these changes and assume you accept them.
  • If you still want your account but don’t like the new overdraft charges, we can remove the Arranged Overdraft for you after you’ve paid back any outstanding overdraft balance and charges, if applicable.
  • If you feel your account is no longer right for your business, you can either transfer it to another Santander account or close your account at any time without additional cost before or after the changes become effective. Details of all our accounts can be found at santander.co.uk/business

The updated General Terms and Conditions and Key Facts Documents are effective from 6 April 2020 and will also be available on our website and in our branches from 6 April 2020.

If you have any questions or there’s anything you don’t understand, please visit your local branch or call us on 0800 731 6666. We may record and monitor calls to help us with training.

Frequently asked questions

When does the new overdraft interest rate apply? From 6 April 2020. Existing overdraft fees and charges will apply until the changes are made and you may see these appear on the first account statement you receive after we’ve made the changes.

When do I need an overdraft? An overdraft is intended for borrowing small amounts of money over a short period of time. There are other options available to you for borrowing larger sums of money over a longer period of time, for example a credit card or loan, which may be a cheaper option for you. More information on the different borrowing options is available at santander.co.uk/business

What’s an Arranged Overdraft? An Arranged Overdraft is when we agree a set borrowing limit with you. You need to apply for an Arranged Overdraft before you can use one.

What’s an Unarranged Overdraft? An Unarranged Overdraft is when you go overdrawn by more than your Arranged Overdraft limit, or when there is no Arranged Overdraft limit on your account and your account balance falls below £0. Whilst we’ll try to limit situations where your account goes into an Unarranged Overdraft position, there are circumstances beyond our control and some occasions when we may decide to allow a payment without there being sufficient funds in your account – in these situations, you’ll not be charged for any Unarranged Overdraft borrowing.

The occasions where this might still happen are:

  • if we choose to allow a payment despite there being insufficient funds in your account;
  • if we can’t, for any reason, stop a payment you’ve made;
  • if a payment into your account is recalled by the bank making it;
  • if a cheque paid into your account is later returned unpaid; or
  • if we apply charges to your account.

If you’d like to make sure you can make important payments, you can ask us to set up an Arranged Overdraft limit on your account or for your existing overdraft limit to be increased if needed.

How do I apply for an Arranged Overdraft or change my existing limit? You can apply for an Arranged Overdraft during or at any point after you have opened your account (or change or remove one you already have) on our website, in branch or by calling us. We can’t guarantee that we’ll be
able to offer you one or increase an existing Arranged Overdraft limit, and any decision we reach will be based on what we know about how you manage your money.

What happens if I cancel my Arranged Overdraft? If you cancel your Arranged Overdraft, you must repay the money that you have borrowed as soon as possible before the cancellation can be completed. You must also pay all the fees and interest applicable to your overdraft.

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