Santander changes to overdraft fees !!

spatchcock

I'm not surprised the branch staff didn't know about or understand the changes - this is Santander. I phoned customer services yesterday and was told that there was no change to my account and that there was still a 10 day cap. I then asked to be put through to the new accounts department. I asked them for the deatils of the other accounts available to me. He recited a list of interest rates like these that are still on the Santander website for new customers. When I told him I received a document a few days ago saying that all these rates had been replaced with daily changes, he put me on hold before coming back and telling me that I was right. He said that they new changes were coming but didn't know they'd been announced He them confirmed that the cap on my ex-A+L account had indeed risen to 20 days. He said his colleague must have thought I had a Premier 50 account - definately not true.

So there you have it, I knew more than the customer service agents just by reading a booklet that came with my statement.

The combination of the fee rise and the clear disorganisation is making me think this is good time to move banks. First Direct looks attractive. Any idea if they're likely to match a £3500 limit, albeit with different terms?

Degenerate

Flyboy152 wrote: »

Or switching it all to Santander for just ten pounds a month. At four thousand pounds that's a flat rate of just three per cent. Which is approximately seven or eight per cent APR.

Yep, the Stoozers are already on to it:

https://forums.moneysavingexpert.com/discussion/3012386

IrishGypsy

These changes have proved somewhat difficult for us staff to get our head around (especially as there's 2 new account 'types' joining the list at the end of this month). -_-

Basically if you're on a Preferred in Credit (PICR) and you use an Authorised O/D you'll be hit with 20 [EMAIL="days@ 50p"]days @ 50p[/EMAIL] per day (£10psm if used for all 20 days of your statement month).

If you're on a PICR but are regularly using an authorised O/D, then switching for free to a Preferred Overdraft Account (PODR) will result in 5 days less. So it's 15 days @ 50p (max £7.50), a saving of £2.50.

Note: Our systems allow for ONE 'change' from PODR to PICR or PICR to PODR for free in a 12 month period. After that it's a tenner (or it was last time I checked a while ago).

Having said that, the Reward account (£10pm fee), is capped at 10 days @ 50p (£5 max), with the added benefits of 10 days @£5 if in an UNauthorised O/D (compared to a cap of 20 days for a PODR or a PICR) AND both the Paid and unpaid items fees are less (at £5 paid and £10 unpaid), compared to £25 regardless on a PODR or a PICR.

Then there's the breakdown cover, travel insurance etc, etc.

So yea, a few changes. Those who barely use it may be worse off, those who use it loads will be better off each month.

Flyboy152

That's even better. At five thousand pounds, that works out at a flat rate of 1.8%. :j:j

Melly31

IrishGypsy wrote: »

These changes have proved somewhat difficult for us staff to get our head around (especially as there's 2 new account 'types' joining the list at the end of this month). -_-

Basically if you're on a Preferred in Credit (PICR) and you use an Authorised O/D you'll be hit with 20 days @ 50p per day (£10psm if used for all 20 days of your statement month).

If you're on a PICR but are regularly using an authorised O/D, then switching for free to a Preferred Overdraft Account (PODR) will result in 5 days less. So it's 15 days @ 50p (max £7.50), a saving of £2.50.

Note: Our systems allow for ONE 'change' from PODR to PICR or PICR to PODR for free in a 12 month period. After that it's a tenner (or it was last time I checked a while ago).

Having said that, the Reward account (£10pm fee), is capped at 10 days @ 50p (£5 max), with the added benefits of 10 days @£5 if in an UNauthorised O/D (compared to a cap of 20 days for a PODR or a PICR) AND both the Paid and unpaid items fees are less (at £5 paid and £10 unpaid), compared to £25 regardless on a PODR or a PICR.

Then there's the breakdown cover, travel insurance etc, etc.

So yea, a few changes. Those who barely use it may be worse off, those who use it loads will be better off each month.

Hi can you tell me where I can find more details about the rates/charges etc for the Reward account online as I can only find links that take me to current account rates/charges on the Santander website?

sozklee

I have been struggling to get my overdraft down, My husband works very hard and the money paid in to my account is my child tax to buy our food.
I have had a hard time now they want to take £10 of my money money for the priviallage!!
So I'm voting with my feet my husband has taken the money I owe from the credit card so I can pay that in and get into the black there.
I think it is very unfair but Im voting with my feet getting my child tax paid into another account and closing the santandar down sorry my santandar you lose I wont be treated a mug for Ill go to barclays.

Flyboy152

But what will you do when Barclays do the same thing? My suggestion would be to re-negotiate your overdraft with them and switch all your borrowings to them. At four thousand pounds the rate works out as only 3% flat (approximately 6% APR). At two thousand pounds it works out as 6% flat (approximately 12% APR). If your borrowing costs you more than that, it makes sense to switch.

LemonTree_3

I have a A+L Premier Current account and so far enjoyed a £10K overdraft while paying just a monthly overdraft fee of £5 (£0.50 a day with a 10 day cap). Now, Santander will rise the 10 day cap to 20 days. So I would need to pay £10 a month (I know it's not much either). Anyhow, Santander has this new Preferred Current account which has a 10 day cap. Hence, I'm thinking of switching my Premier Current account to this new Preferred Current account. What do people think about this? Is it worth switching?

lee_rees

Has anybody else spotted the arbitrage opportunity here?

Santander recently increased my overdraft to £4000 on my current account, I also have a Santander credit card and an ISA.

If we get the overdraft for free then surely that means that we basically have £4000 to invest into other interest generating sources, for example social banking and high interest savings accounts. There are brasilian banks that pay 12% annual interest on savings accounts.

For the penny pinchers amoungst us, that's an opportunity to grab £480 per year for free. Even if you are in the poor house (paying £10 per month) you'd still make £360.

Another option would be to use your overdraft to pay off your credit card, this would save you heaps in interest charges.