Santander doubles overdraft fees
Existing Santander customers will face higher charges for going overdrawn, after the bank announced plans to increase fees and interest rates across its current account range.
Consumer watchdog Which? has revealed that the bank is doubling its daily arranged overdraft fee on all accounts other than its Zero Account from £0.50 to £1, from 16 March 2012.
Interest rate risesZero Account customers are not completely unaffected by the changes either, as they face an interest rate rise. Santander will hike the interest rate on both arranged and unarranged overdrafts up from 12.9% to 18.9% EAR (variable) from 16 April.
Matt Woodington, Which? analyst, said: "It is existing customers that will be charged more, highlighting the importance of regularly shopping around for the best bank account and being willing to switch where necessary.
"This can ensure that you receive the best interest rates for your savings, incur lower charges if you do need to use your overdraft and also benefit from the switching incentives that banks often offer."
So what are your other options? Halifax are offering £100 to customers switch to their current account, plus they'll pay you £5 for each month you pay in at least £1000. Meanwhile HSBC's current account special offer gives customers a whopping 6% interest on current account balances up to £2,500 plus an interest-free overdraft for 12 months.