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Santander 123 current account fees rising to £5 a month from January | |
(1 day later) | |
From January, Santander will charge three million current account holders £60 a year, up from £24. | From January, Santander will charge three million current account holders £60 a year, up from £24. |
Staff will reportedly be told this week that current account fees will rise from £2 a month to £5 a month from January, with customers to get the news later in the week. | Staff will reportedly be told this week that current account fees will rise from £2 a month to £5 a month from January, with customers to get the news later in the week. |
The change severely cuts the benefits of holding a Santander account for customers who switched their current account from the big four UK banks: Lloyds, Barclays, HSBC and RBS. | The change severely cuts the benefits of holding a Santander account for customers who switched their current account from the big four UK banks: Lloyds, Barclays, HSBC and RBS. |
Fees for the Santander credit card will also rise from £24 to £36 a year. | Fees for the Santander credit card will also rise from £24 to £36 a year. |
Santander said that it was responding to changes in ‘the financial landscape’ such as tough bank legislation and consistently low current account saving rates. A spokesman said that a number of competitors including Capital One and Tesco has also been scrapping perks. | Santander said that it was responding to changes in ‘the financial landscape’ such as tough bank legislation and consistently low current account saving rates. A spokesman said that a number of competitors including Capital One and Tesco has also been scrapping perks. |
The news comes ahead of a report by the Competition and Markets Authority next month exploring concerns that the big four banks do not offer good enough deals to consumers because of lack of competition. | The news comes ahead of a report by the Competition and Markets Authority next month exploring concerns that the big four banks do not offer good enough deals to consumers because of lack of competition. |
The Santander 123 account, with its 3 per cent interest on balances between £3000 and £20,000, seemed to offer a viable alternative, but the new charges will largely negate those benefits. | The Santander 123 account, with its 3 per cent interest on balances between £3000 and £20,000, seemed to offer a viable alternative, but the new charges will largely negate those benefits. |
Santander said that the three million current account customers held an average of £12,500 in the 123 account. "Most of our customers are using it for the interest rates and the average cash back will get is £9, which continues to be more than the fee," the spokesman said. | Santander said that the three million current account customers held an average of £12,500 in the 123 account. "Most of our customers are using it for the interest rates and the average cash back will get is £9, which continues to be more than the fee," the spokesman said. |
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