Santander ups fees on “123” current account
14/09/2015
Santander, one of the UK’s biggest banks, have announced that they are more than doubling the charges on it’s main current account, leaving customers out of pocket.
The current costs of Santander’s main current account stands at £24 a year. In January, this will be increased to £60 a year. The bank will also be increasing the fees on its main credit card from £24 to £36 a year.
The cost increase will be a blow to many consumers who transferred their current accounts from the “big four” UK high street banks; Lloyds, Barclays, HSBC and RBS, thanks to the attractive perks on Santander’s “123” current account. The account also had endorsements from experts such as television money guru Martin Lewis.
James Daley, founder of bank account analysts Fairer Finance, said:
"Santander had been one of the few to offer a genuine alternative to the traditional banks – and as well as a blow for the millions of customers who were lured in by its attractive offers, this will reduce competition in banking, which is already weak."
The Santander “123” account offers up to 3% interest on balances between £3,000 and £20,000 and between 1% and 3% on household bills. The Santander 123 credit card pays between 1% and 3% cashback on spending in supermarkets, department stores and on travel.
Need financial advice?
If you have any personal finance questions related to this news article, then please contact our financial advisers. You can get in touch by asking a question online, calling us on 0800 092 1245, or by arranging a visit.
Share this..
Related stories
Do you know how much it costs to run your bank account?
Over the last few months, as profitability in UK finance sector has become harder to come by, a number of charges have been introduced to the mix, with very few hitting the financial headlines. Many financial operations, such as Halifax, have used the introduction of new European laws to amend their small print and introduce new charges and potentially expensive changes to customer agreements.
Let your bank know if you are in difficulty!
As the number of people in serious financial trouble continues to rise in the UK, yet again we are seeing more and more people burying their heads in the sand and hoping everything will be okay tomorrow. Debts are piling up, income is being spent on interest and pressure is building on everyday life for many people in the UK. So why are people still burying their head in the sand and hoping everyt...
Read MoreSantander bids to increase share of UK savings market
Spanish banking giant Santander, the owner of Abbey and Alliance & Leicester, has this week revealed plans to introduce a £100 payment per customer switching to any of the above banks after 7 September. This particular offer is one of very few currently available on the market and while there are some conditions attached it is sure to catch the eye of many who are still feeling the effects of the...
Read MoreRBS bank charge verdict document 'leaked'
RBS would look to return bank charges to customers if it lost an ongoing High Court case on the matter, a bank document has indicated.The statement, leaked to the BBC, shows that accounts that were "due a refund" would be "calculated as accurately as possible".Furthermore, the document adds, "any monies will be reconciled".The wording of the leaked statement suggests that RBS, which is involv...
Read MoreIf the OFT cannot rule on bank charges then who can?
The decision by the UK Supreme Court that the Office of Fair Trading (OFT) has no jurisdiction to vote on the legality and fairness of banking charges prompts the question - Who is actually in control of the UK banking sector? While the FSA (Financial Services Authority) is the regulator for the sector there has been no mention of the FSA becoming involved in the overdraft charges saga. As a co...
Read More