We’re putting temporary measures in place for all new and existing overdraft customers, not just those who request the support.
What are you doing to help?
We’re putting in place some temporary measures between 6 April and 9 July 2020 to help customers at this time. You don’t need to call us or do anything – we’ll do it all for you.
- If you already have an arranged overdraft in place on one of our Santander adult current accounts, then dependent on your agreed limit we’ll automatically waive interest on the first £500 from 6 April until 9 July 2020.
- If you use more than £500 of your arranged overdraft, we’ll charge a discounted arranged overdraft interest rate of 19.90% EAR variable on the amount over £500, where the standard arranged overdraft rate is higher. For example, if you have an arranged overdraft limit of £600 and are £600 overdrawn, you won’t be charged any interest on the first £500 and will be charged the discounted interest rate of 19.90% EAR variable on the remaining £100 between 6 April and 9 July 2020. The standard arranged overdraft rates are 39.94% EAR variable on most of our accounts and 29.94% EAR variable for Choice Current Account.
- If you have a Choice Current Account, which caps arranged overdraft interest at £20 for a £10 monthly fee to maintain the account, we will not collect the monthly account fee between 6 April and 9 July 2020. The £20 cap will still apply.
After 9 July 2020, we’ll stop waiving interest on the first £500 and the standard arranged overdraft interest rates will apply.
What about charges I’ve been pre-notified about already?
If you were overdrawn before 6 April 2020, you’ll still need to pay any daily fees or interest in line with the terms and conditions of your account. This will be notified on statements and collected as usual after 22 days.
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.
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 say we may charge interest on your overdraft, but don’t worry, subject to the overdraft limit agreed we’ll automatically waive interest on the first £500 of your arranged overdraft between 6 April and 9 July 2020.
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 (see above) or when you open a new current account (subject to status). Then subject to the overdraft limit agreed we’ll automatically waive the interest on the first £500 of any arranged overdraft which is used between 6 April and 9 July 2020.
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 will say you’ll be charged interest for using your arranged overdraft, because those are our normal terms and conditions. As a temporary measure, we will subject to the overdraft limit automatically waive interest on the first £500 of any existing arranged overdraft which is used from 6 April until 9 July. The terms of your account won’t change and after this date you’ll be charged interest in line with them. You’ll continue to see standard interest rates detailed on the website, within account information such as Key Facts Documents, and on your statements.
I’m worried I may go into an unarranged overdraft, what can I do?
We removed unarranged overdraft fees from all our accounts on the 6 April 2020, however, we can’t guarantee a payment will be made if the account is over your arranged overdraft limit. If you’re worried about this, you could consider temporarily requesting an increase to your arranged overdraft limit using Online Banking (see above).
Did you make planned changes to overdrafts on the 6 April?
Yes, we moved from fixed daily to a single rate of interest for arranged overdrafts and removed all unarranged overdraft fees and charges.