MSE News: Santander to scrap unarranged overdraft fees on 123 accounts

edited 26 January 2018 at 2:37PM in Budgeting & Bank Accounts
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Former_MSE_RosieFormer_MSE_Rosie Former MSE
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edited 26 January 2018 at 2:37PM in Budgeting & Bank Accounts
Santander is to remove all unarranged overdraft fees on its current accounts that charge monthly fees, including its popular 123 and 123 Lite accounts - though a small minority could be worse off under changes to its other accounts...
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'Santander to scrap unarranged overdraft fees on 123 accounts'
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  • MchambersMchambers Forumite
    1.1K Posts
    That is nice and generous of Santander after they reduced interest rate to 1.5% for 123 !!:rotfl::rotfl:
  • robin58robin58 Forumite
    2.8K Posts
    I think the biggest question is, why do we have to wait for 6 months for the new charges or removal of charges to come into force?
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  • TheJackahTheJackah Forumite
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    It's a good start. With recent regulatory changes, and now this, overdrafts, including unarranged, are slightly more viable options. Do remember people, they're for short-term emergencies!
  • ChrysalisChrysalis Forumite
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    what about the arranged overdraft fees they charge? are unarranged overdrafts about to become more cheaper than arranged overdrafts O_o.
  • Am I being really dumb here? If I have an arranged overdraft with my 123 lite account post July I get chaged £1 per day for being overdrawn by £13. If I don't have an arranged overdraft post July and I go overdrawn by £13 I don't get charged anything.

    In which case I might see if I can get rid of the arranged overdraft. I'll be better off.
  • SystemSystem Forumite
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    It makes a 123 lite account almost a no brainer for some people
  • So now this will encourage more people to 'steal' the banks money, and people who live within their means will be the ones that pay, through lower interest, reduced deals etc. Noice. Why not just prevent people from being able to go in to an unauthorised overdraft to begin with.
  • SystemSystem Forumite
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    jimbo747 wrote: »
    So now this will encourage more people to 'steal' the banks money, and people who live within their means will be the ones that pay, through lower interest, reduced deals etc. Noice. Why not just prevent people from being able to go in to an unauthorised overdraft to begin with.

    The bank authorises payments in almost all circumstances, they then choose to allow unauthorised overdrafts.

    With the abolition of Cheque Guarantee cards, it's only offline debit card transactions that they have to honour.
  • Jabba_flabbaJabba_flabba Forumite
    95 Posts
    Part of the Furniture 10 Posts Combo Breaker
    brutus6 wrote: »
    Am I being really dumb here? If I have an arranged overdraft with my 123 lite account post July I get chaged £1 per day for being overdrawn by £13. If I don't have an arranged overdraft post July and I go overdrawn by £13 I don't get charged anything.

    In which case I might see if I can get rid of the arranged overdraft. I'll be better off.

    At first glance it didn't make sense to me either. But it looks to me like unarranged overdrafts above £12 attract additional fees that arranged overdrafts don't. Like the paid-transaction fee, for example. From the table's legend in the MSE article:
    (i) If you're in an unarranged overdraft of £12 or less, you won't incur any usage fees or paid-transaction fees.

    I would infer from this that for unarranged overdrafts above £12, a fee would apply, but then the table itself begs to differ ("No fee").

    FWIW, here's a link to the official Santander announcement

    Yours,
    Confused (in a slightly different way)
  • [Deleted User][Deleted User] Forumite
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    MoneySaving Newbie
    At first glance it didn't make sense to me either. But it looks to me like unarranged overdrafts above £12 attract additional fees that arranged overdrafts don't. Like the paid-transaction fee, for example. From the table's legend in the MSE article:



    I would infer from this that for unarranged overdrafts above £12, a fee would apply, but then the table itself begs to differ ("No fee").

    FWIW, here's a link to the official Santander announcement

    Yours,
    Confused (in a slightly different way)


    After 18 months you’d think the poster you’re replying too would have this sorted by now :)
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