Santander unveils set charges for overdrafts
Spanish banking giant Santander yesterday became the latest group to announce plans to levy charges on current account customers who go into the red with permission.
The group is launching a new current account which will have lower fees for people who go into unauthorised overdraft, but will replace interest charges for customers who have an authorised overdraft with a daily fee.
Under the new charging structure, customers who go into the red with permission will be charged 50p a day, up to a maximum of £5 a month, instead of being charged interest of 12.9% or 19.9%, depending on which account they have.
Those who go into unauthorised overdraft will have to pay £5 a day, with the fees capped at £50 a month.
They will also be charged £5 for every item that is paid while they are in the red without permission and £10 for every unpaid item.
The new account is available to anyone who holds their main current account with the group and pays at least £1,000 a month into it.
Santander will write to its existing current account customers alerting them to the new account, which will be available in December, following the rebranding of Alliance & Leicester.