We put in place temporary measures for all new and existing overdraft customers on 6 April 2020 to 23 July 2020 (extended from 9 July 2020). We recognise, however, that coronavirus is still financially impacting peoples lives and we’ve been looking at further ways to support you.
What are you doing to help?
If you still find yourself financially impacted by coronavirus you can ask for a further 3 months of temporary overdraft support:
- We’ll waive the interest on up to £500 of your arranged overdraft (dependent on your agreed limit).
- If you use more than £500 of your arranged overdraft, we’ll charge a discounted interest rate of 19.90% EAR (variable) where your standard arranged overdraft rate is higher.
- For Choice Current Accounts, which caps arranged overdraft interest at £20 for a £10 monthly fee to maintain the account, we won’t collect the monthly account fee. The £20 monthly cap will still apply.
The support is available on 1|2|3 Current Accounts, 1|2|3 Lite Current Accounts, Everyday Current Accounts, Over 18 Cash cards, Further Education Bank Accounts, Zero Current Accounts, Choice Current Accounts, Select Current Accounts and Private Current Accounts. For Select and Private current accounts, the first £500 of your arranged overdraft is already interest free.
After 3 months, your account will automatically go back to its standard features, charges and interest rates.
How do I ask for the additional 3 months of temporary overdraft support?
From 10 July to 31 October 2020 you can request further support by completing our online form. Please read the FAQs before requesting the support. You’ll need an email address to request the support online, so we can keep you updated about the request. If you don’t have one you can call us on 0800 9 123 123. We are experiencing a very high number of calls at the moment so it could take longer than normally for you to speak to us.
For joint accounts, only one account holder needs to request the support.
If you feel you need longer than 3 months of support take a look at our money worries page for more ways we can help you.
What happens if I don’t request further support?
The existing temporary support measures will end on 23 July 2020. After that, your account will automatically go back to its standard features, charges and interest rates. If you feel that you are still financially impacted by coronavirus you can request, until 31 October 2020, further temporary overdraft support for 3 months.
Will you automatically be increasing my overdraft limit to £500?
No, your existing arranged overdraft limit won’t change. If you’d like to ask for a new overdraft or increase an existing one with Santander, you can request this in Online Banking by clicking the ‘Manage Overdraft’ tab in ‘My Account & Transactions’ section.
My overdraft interest rate is currently less than 19.90% EAR variable, does this mean I will be worse off?
No, we are maintaining overdraft interest rates if they are already less than 19.90% EAR variable, so you will be charged at the same interest rate as you are today in this instance.
I have a Select Current Account, what does this mean for me?
No interest is charged on Select Current Accounts up to £500, this will not change as the existing support ends or if you request further support.
Can I request temporary overdraft support if I’ve recently switched my current account to Santander?
If you have recently switched your current account to us using the Current Account Switcher Service, you will not be charged for the first 4 months of your overdraft. If eligible, you can request temporary overdraft support after the 4 months have ended, if this is before 31 October 2020.
Will I still receive alerts when I go overdrawn?
Yes, we’ll keep sending you alerts when you use your arranged overdraft to help you stay on top of your money. The alerts will say that we’re charging interest on your overdraft. However, if you’ve asked for the further temporary overdraft support we’ll waive interest on up to the first £500 (dependent on your agreed limit) for 3 months from the date of your request. There will be no charges for this.
I don’t have an overdraft – can I apply for one?
Yes, you can apply for an arranged overdraft on an existing Santander current account in Online Banking or when you open a new current account (subject to status). Having an overdraft can be useful as a back-up to help you deal with short-term, unexpected costs. It isn’t suitable for longer term borrowing. You’ll then need to request the temporary overdraft support separately using the ‘Request overdraft support button’ above.
I’ve applied for an overdraft / have an existing overdraft and it says there is an interest charge for using it. Is this right?
The website and the terms and conditions for your account say you’ll be charged interest for using your arranged overdraft, because those are our normal terms and conditions. If you’ve asked for further overdraft support, we’ll temporarily waive interest on up to the first £500 of your arranged overdraft (dependent on your agreed limit) and charge a discounted rate of 19.90% EAR (variable) where the standard rate is higher on any arranged overdraft borrowing over £500. After 3 months, you’ll go back to your standard features, charges and interest rates.
I’m worried I may go into an unarranged overdraft, what can I do?
There are lots of options available to help you, please take a look at our money worries page. Alternatively you can find more information on the Financial Conduct Authority’s information page ‘Dealing with financial difficulties during the coronavirus pandemic’ and the Money Advice Service’s ‘Money Navigator Tool’.
Did you make planned changes to overdrafts on the 6 April?
Yes, we moved from fixed daily overdraft fees to a single rate of interest for arranged overdrafts and removed all unarranged overdraft fees and charges.