Spanish bank to introduce fee for authorised overdrafts
By S Hunt, 1st July 2010
Santander has announced that it will impose a charge on
customers who go into overdraft with the bank's permission.
Plans for a new current about have been unveiled by the Spanish
banking colossus, and the new fee for authorised overdrafts is one
of its features.
Santander bankers going into authorised overdraft previously
paid interest but will now pay a levy of 50p a day, with a maximum
of £5 a month.
Meanwhile those entering overdraft without permission will now
be charged less as a result of the change - they will be made to
pay a fee of £5 per day which will be capped at £50 per month.
There will be a supplementary charge of £5 for paid items and
£10 for unpaid items levied against those in unauthorised
overdrafts. Both of these are significantly lower than the charges
on Santander's standard current account.
Santander will be making this new account open in December to
anyone who holds their main account with them and pays at least
£1,000 a month into it, while overdraft charges for people who own
a current account with the group but do not use it as their main
account are being reviewed, according to the Spanish group.
Nici Audhlam-Gardiner of Santander UK claimed the new
arrangements were "simple to understand and transparent".
This news follows hot on the heels of the announcement that
Lloyds were to overhaul their overdraft charges so that those going
into the red without permission would be subject to lower
charges.
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