Santander is to change the way it charges for overdrafts, it has been announced.
A three-tier structure is being introduced and customers in each tier will pay different overdraft fees.
Customers who have a Santander mortgage or investments or over £10,000 in savings will be eligible for a Zero Account which does not charge for overdrafts, whether authorised or unauthorised.
Preferential Account holders – those who put over £1,000 a month into their bank or pay for their account – will be charged 50p per day for an agreed overdraft. They will pay £5 per day for unauthorised overdraft use, for a maximum of ten days.
Those who don’t meet the criteria for a Zero or Premium Account will have a Standard Account. They will also pay 50p per day for an agreed overdraft and £5 per day for unauthorised overdraft use, but in their case this can be for up to a maximum of 20 days. In addition, account holders will be hit with a £25 fine every time a payment is declined or accepted once they are over their overdraft limit.
The changes kick in in March 2011 and customers will receive letters shortly explaining the new charging structure.
