Santander has reviewed its overdraft charges on its 123 Current Account. As a result, customers who regularly dip into an unauthorised overdraft may see their cost of borrowing drop.
The daily fee for unauthorised usage of an overdraft has been increased to £6 per day, but the fees on paid and unpaid items have been removed, which would reduce the cost of borrowing for certain customers.
The finer details…
The account also comes with an authorised overdraft fee of £1 per day. The cap has been removed, so customers will need to pay careful attention to how long they're in their overdraft for.
Both authorised and unauthorised overdrafts have a fee-free buffer of £12. There are also no fees for paid and unpaid items.
The account still pays tiered rates of credit interest depending on the balance (up to 3.00% APR on balances of £3,000 - £20,000) and has a minimum monthly funding requirement of £500.
Why we like it…
This account is likely to appeal to customers looking for an account that offers reasonable unauthorised overdraft charges, with the charges meaning they could find their cost of borrowing reduced if they often dip into their overdraft without prior arrangement.
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