Abbey first to launch Fee Free banking - for mortgage customers only...

[Amethyst]

Santander , who own Abbey, have announced the launch of a new current account from January which will offer fee free banking.

Contrary to much opinion that the forthcoming Judgment from the Supreme Court in the case between the OFT and the Banks this does not seem to be signaling the end of free banking, rather the opposite.

The Account is however only available to consumers who hold their Mortgage with Abbey although there is no requirement to make mortgage payments from the account.

The ZERO Current Account from Santander offers:

• No authorised charges
• No unauthorised charges
• No charges for unpaid items
• No charges for paid items
• Overdraft interest rate of 12.9 per cent
• No separate unauthorised overdraft interest rate
• No charge for use of ATMs world-wide and no foreign exchange fees
• Fee-free debit card usage for purchases world-wide
• 6 per cent in credit interest rate fixed for 1 year (balances up to £2500 if you credit more than £1k per month)
  
• No banker’s draft fees

The bank have stated that if you didn't have enough credit in your account to make your Abbey Mortgage Payment then they would pay it and continue to charge the overdraft rate of 12.9% on the additional overdraft.

This is an addition to their Zero range of products which includes The Santander Zero Credit Card which offers no fees and a 0% interest of purchases for the first three months.


António Horta-Osório, Chief Executive of Santander UK, said:
“Santander is uniquely placed amongst UK banks to change the way it does business, and our new approach is one based on simplicity: the more business you do with us, the more we will offer you in return.''

The Bank told Legal Beagles they hope that customers will find the deal so attractive they will use the account as their primary banking account and manage all their direct debits and standing orders through it.

They have also said that this decision, of course, has no relation to the forthcoming judgment in the Supreme Court over the fairness of bank charges, nor anything to do with the OFT's recent Market Study on Personal Current Accounts. Figures obtained by LegalBeagles show over 1.2 million customers currently have their complaints about bank charges on hold pending the outcome of the test case.

We feel that this type of account comes into line with the OFTs recommendations made in the PCA report and will be beneficial to consumers pushing the hand of the other banks to lower their fees, it is a clear and easy to understand system offering good value for money.

The deal will be available to all customers of Abbey and Bradford & Bingley when the two banks become Santander. It will be extended to Alliance & Leicester customers when it re brands to Santander later in 2010.

Consumers wishing to pre-register interest should call 0800 234 6058

We will comment further when we receive a copy of the full terms and conditions of this account.

[debtisbad]

Originally Posted by Amethyst

Santander , who own Abbey, have announced the launch of a new current account from January which will offer fee free banking.

Contrary to much opinion that the forthcoming Judgment from the Supreme Court in the case between the OFT and the Banks this does not seem to be signaling the end of free banking, rather the opposite.

The Account is however only available to consumers who hold their Mortgage with Abbey although there is no requirement to make mortgage payments from the account.

The ZERO Current Account from Santander offers:

• No authorised charges
• No unauthorised charges
• No charges for unpaid items
• No charges for paid items
• Overdraft interest rate of 12.9 per cent
• No seperate unauthorised overdraft interest rate
• No charge for use of ATMs world-wide and no foreign exchange fees
• Fee-free debit card usage for purchases world-wide
• 6 per cent in credit interest rate fixed for 1 year (balances up to £2500 if you credit more than £1k per month)
  
• No banker’s draft fees

The bank have stated that if you didn't have enough credit in your account to make your Abbey Mortgage Payment then they would pay it and continue to charge the overdraft rate of 12.9% on the additional overdraft.

This is an addition to their Zero range of products which includes The Santander Zero Credit Card which offers no fees and a 0% interest of purchases for the first three months.


António Horta-Osório, Chief Executive of Santander UK, said:
“Santander is uniquely placed amongst UK banks to change the way it does business, and our new approach is one based on simplicity: the more business you do with us, the more we will offer you in return.''

The Bank told Legal Beagles they hope that customers will find the deal so attractive they will use the account as their primary banking account and manage all their direct debits and standing orders through it.

They have also said that this decision, of course, has no relation to the forthcoming judgment in the Supreme Court over the fairness of bank charges, nor anything to do with the OFT's recent Market Study on Personal Current Accounts. figures obatined by LegalBeagles show over 1.2 million customers currently have their complaints about bank charges on hold pending the outcome of the test case.

We feel that this type of account comes into line with the OFTs recommendations made in the PCA report and will be beneficial to consumers pushing the hand of the other banks to lower their fees, it is a clear and easy to understand system offering good value for money.

The deal will be available to all customers of Abbey and Bradford & Bingley when the two banks become Santander. It will be extended to Alliance & Leicester customers when it rebrands to Santander later in 2010.

Consumers wishing to pre-register interest should call 0800 234 6058

We will comment further when we receive a copy of the full terms and conditions of this account.

That's fine Amethyst, but how many times have we seen accounts launched with attractive "headline"rates that then get reduced down the road? They do this to get to the top of the "best buy" lists and then change everything down the road.

I bet if you have a look at the terms and conditions on this offer, there will be get-out clauses, such as "we reserve the right to change our fees.....blah...blah".

OK, they have to protect themselves against interest rate changes, etc, but they have systmatically abused this system for a long time.

[Amethyst]

Originally Posted by debtisbad

That's fine Amethyst, but how many times have we seen accounts launched with attractive "headline"rates that then get reduced down the road? They do this to get to the top of the "best buy" lists and then change everything down the road.

I bet if you have a look at the terms and conditions on this offer, there will be get-out clauses, such as "we reserve the right to change our fees.....blah...blah".

OK, they have to protect themselves against interest rate changes, etc, but they have systmatically abused this system for a long time.

Absolutely agree with you.

[Tools]

So far, the only expiring "offer" on the account is the 6% interest that will be given whilst the account is in credit. This offer is available for the first 12 months only, we await the T&C's before knowing anything else.

[Amethyst]

UPDATE

The terms for this account are now live

The account is provisional on 'fair usage'

• You Must have your mortgage with Santander
• Your mortgage most not be in arrears (2 missed payments or more)
  
• You Must credit your account with more than £1000 psm and this must be your main income
• You Must have more than 2 Direct Debits/Standing Orders set up to go from the account psm.
• ‘Fair Usage’ means making a maximum of 25 transactions per year from the Non-Standard Account Service Fees List in the Key Features and Price List.

http://www.santander.co.uk/csgs/Stat...ue&maxage=3600

[natweststaffmember]

Have you got a list of the non standard account fee service list(a bit of a mouthful to say the least).

[Amethyst]

ZERO ACCOUNT

Non standard account service fees

Banker's draft and counter cheque fee (please note counter cheques have a minimum transaction value of £1,000)
Free

Stop payment of a cheque
Free


Non Standard Request Service Fees

Statement copy
£5 or £10 for multiple statements

Presentation of foreign cheques
£10 per cheque (the paying bank may make an extra charge)


To transfer between Preferred In-Credit Rate and Preferred Overdraft Rate
Free

Photocopying cheques
£4 per cheque

Electronic Transfer – Within and outside of the UK
£25

[natweststaffmember]

Is there any minimum number, ie if you made 0 non standard fees then you would still be fine?

[Amethyst]

Weird. the 25 max seems only to apply to

Interest Rates & Fees - Bank Accounts: Santander
Non standard account service fees

Banker's draft and counter cheque fee (please note counter cheques have a minimum transaction value of £1,000)
Free

Stop payment of a cheque
Free



The instant Overdraft stuff is under the heading
Standard account service fees

[Amethyst]

Interestingly Santander have put two examples of situations where charges may apply in their T&C's - The OFT implementation group are pushing for a standard SEVEN examples in all banks T&C's. So all banks have same examples and it makes it easy to compare. No example on the Zero account tho - which I think would be, ummm Zero and 12.9% for the overdraft (whether advance or instant)

Example 1 of how our fees operate
You have no Advance Overdraft set up on your account. At the start of the month you make a cheque payment for £18.99, which we pay and causes your account to go £12 overdrawn. The next day you make a card payment for £8, which we pay and causes your account to go £20 overdrawn. The following day a direct debit for £200 is presented to us, which we also pay, causing your account to be £220 overdrawn.
In this example you would be charged:

• An Instant Overdraft Request Fee of £15 for the cheque payment
• An Instant Overdraft Request Fee of £5 for the card payment
• An Instant Overdraft Request Fee of £35 for the Direct Debit
• An Instant Overdraft Monthly Fee of £25 for using the Instant Overdraft service
• Interest would be debited at a rate of 28.7% EAR (variable) for the Instant Overdraft

Example 2 of how our fees operate
Your balance at the start of the day is £100 and you have an Advance Overdraft set up on your Preferred Overdraft account for £300. A cheque that you have written for £800 is presented to us that day, which we pay. A direct debit from your account for £450 is also presented to us that day, which we do not pay.
In this example you would be charged:

• An Instant Overdraft Request Fee of £35 for the cheque payment
• An Instant Overdraft Request Fee of £35 for the Direct Debit
• An Instant Overdraft Monthly Fee of £25 for using the Instant Overdraft service
• Interest would be debited at a rate of 28.7% EAR (variable) for the Instant Overdraft of £400 and the Advance Overdraft of £300.

[Amethyst]

Have emailed the press office to check.

[Amethyst]

there we are

Hi Sharon

Siobhan has asked me to respond to your query on the Zero account.

Where we state Fair Usage in the special conditions this only refers to the Banker's draft, counter cheque fee and Stop payment of a cheque. i.e. there are no limitations on the number of transactions that may or may not be construed as an Instant Overdraft Request.

If you need any more info, please let me know.

Regards
Steve

Steve Gracey
Senior Media Relations Manager

[Amethyst]

The fee-free account was launched in January for those with a Santander mortgage and from today is also available to those holding a Santander investment product, or prepared to set one up.

You are eligible if:

• You have a mortgage with us that is not in arrears, or an investment with Santander ISA Managers Ltd, Santander Portfolio Management UK Ltd or Santander Unit Trust Managers Ltd; and
• it is your main current account and you pay in a minimum of £1,000 each month; and
• you switch your current account using the Account Transfer Service (new current account customers only).

[debtisbad]

Personally, I wouldn't trust this bunch at Santender.

As reported in the Times today, an article that shows how all UK banks are ripping
us off on ISAs.

Santender come out as one of the worst with an ISA that pays 3.5% interest. After 1 year it dwindles to a miserley 0.5%

A leopard never changes it's spots.