High street bank, Santander, have introduced a new overdraft charging system for the current account holders, but it’s not a simple system.
The new current accounts have a three tier system, which leaves come customers paying when they go overdrawn, and others not.
The rate you pay depends on various factors, including the number of financial products you hold with the bank.
Those with just a bank account will have to pay a set fee per day they are overdrawn. Others may have more than one product, like an ISA or mortgage and will benefit from preferential rates, as can those who pay in more than £1,000 a month.
The rate planned will be 50p a day for those who have an arranged overdraft (half that of the Halifax) and £5 a day for an unarranged overdraft.
Director of banking at Santander, Nici Audhlam-Gardiner, told the Daily Telegraph, “The new structure supports our strategy of rewarding customers who decide to have a deeper banking relationship with us.”
Customers who have cheques that bounce will be charged £25 under the new structure.