Santander softens-up on overdraft charges

by Gill Montia

Story link: Santander softens-up on overdraft charges

Santander has followed Lloyds Banking Group in reviewing its charges for both authorised and unauthorised overdrafts.

The group is launching a new current account that replaces interest charges of 12.9% or 19.9%, for customers who have an authorised overdraft, with a daily fee of 50p, up to a maximum of £5 a month.

Those going into the red without permission will pay £5 a day, with fees capped at £50 a month.

However, a £5 charge will apply to every item that is paid during the period of the unauthorised overdraft, rising to £10 for every unpaid item.

The new deal is available from December, to existing Santander customers who pay at least £1,000 a month into their current accounts.

The lender’s UK director of banking, Nici Audhlam-Gardiner, says: “The overdraft fee structure on the new account is simple to understand and transparent.”