Fee-free Current Account On Offer

• News
• Published: 20 Nov 2009 in Money and Mortgages

A fee-free current account is being made available to mortgage customers of Spanish banking giant Santander.

Their Zero Current Account pays interest of 6 per cent on balances, has no authorised or unauthorised overdraft charges and doesn't charge for payments that bounce.

The account pays interest of 6 per cent on balances of up to £2,500, providing at least £1,000 is paid into the account each month, for the first year, after which interest falls back to 1 per cent. Interest on overdrafts is charged at 12.9 per cent. Also, customers will also not be charged to make cash withdrawals or purchases abroad.

The group, which has a 13.5 per cent share of the mortgage market, currently has 400,000 mortgage customers who have a current account with it across all of its brands, including 350,000 who bank with Abbey.

But, the bank denied that the timing of the announcement was linked to the current High Court test case on unauthorised overdraft charges. The Supreme Court is due to give its verdict on the case next Wednesday after the banks involved, including Santander, appealed the High Court and Court of Appeal ruling that the charges do come under the scope of the Office of Fair Trading.