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"Fee-free" bank account unveiled
A current account that does not charge for unauthorised overdrafts is unveiled days before a major court judgement.
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Abbey-owner Santander unveils "fee-free" bank account
Santander is the owner of the Abbey brand
A current account that does not charge customers for unauthorised overdraft charges has been unveiled days before a major court judgement.
Santander's mortgage customers will be able to sign up for the account, which will also not charge a levy on payments that bounce or withdrawals overseas.
The Spanish bank said it wanted to convert customers with their home loans into current account customers too.
Santander is one of the banks involved in a test case on bank charges.
A judgement on Wednesday, 25 November, will give a final ruling on whether the Office of Fair Trading (OFT) has the power to decide if the unauthorised charges are fair or not.
Seven banks - including Abbey - and one building society want to overturn two previous rulings that would let the OFT investigate their overdraft fees.
Nearly a million people have claimed for the return of their unauthorised overdraft charges, but their cases are on hold.
'Reward'
The Santander Zero Current Account is being offered to Abbey as well as Bradford and Bingley mortgage customers from 11 January next year. It will be offered to Alliance and Leicester mortgage customers in the late summer of 2010.
Santander has clearly taken heed of broad concerns around charging structures and looked to wipe them all away in one fell swoop 
Kevin Mountford, Moneysupermarket.com
The group has a 13.5% share of the mortgage market, with two million mortgage customers. It currently has 400,000 mortgage customers who also have a current account.
"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," said Antonio Horta-Osorio, chief executive of Santander UK.
Kevin Mountford, head of banking at moneysupermarket.com, said this could shake up the current account market, which had been "devoid of ideas" for some time.
"Santander has clearly taken heed of broad concerns around charging structures and looked to wipe them all away in one fell swoop," he said.
The interest charged on authorised overdrafts will be the same as unauthorised overdrafts, at 12.9%.
In October, RBS-NatWest - majority owned by the taxpayer - broke ranks with the rest of the industry by slashing its overdraft charges.
More...
EXCELLENT
Abbey-owner Santander unveils "fee-free" bank account
Santander is the owner of the Abbey brandA current account that does not charge customers for unauthorised overdraft charges has been unveiled days before a major court judgement.
Santander's mortgage customers will be able to sign up for the account, which will also not charge a levy on payments that bounce or withdrawals overseas.
The Spanish bank said it wanted to convert customers with their home loans into current account customers too.
Santander is one of the banks involved in a test case on bank charges.
A judgement on Wednesday, 25 November, will give a final ruling on whether the Office of Fair Trading (OFT) has the power to decide if the unauthorised charges are fair or not.
Seven banks - including Abbey - and one building society want to overturn two previous rulings that would let the OFT investigate their overdraft fees.
Nearly a million people have claimed for the return of their unauthorised overdraft charges, but their cases are on hold.
'Reward'
The Santander Zero Current Account is being offered to Abbey as well as Bradford and Bingley mortgage customers from 11 January next year. It will be offered to Alliance and Leicester mortgage customers in the late summer of 2010.
Santander has clearly taken heed of broad concerns around charging structures and looked to wipe them all away in one fell swoop Kevin Mountford, Moneysupermarket.com
The group has a 13.5% share of the mortgage market, with two million mortgage customers. It currently has 400,000 mortgage customers who also have a current account.
"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," said Antonio Horta-Osorio, chief executive of Santander UK.
Kevin Mountford, head of banking at moneysupermarket.com, said this could shake up the current account market, which had been "devoid of ideas" for some time.
"Santander has clearly taken heed of broad concerns around charging structures and looked to wipe them all away in one fell swoop," he said.
The interest charged on authorised overdrafts will be the same as unauthorised overdrafts, at 12.9%.
In October, RBS-NatWest - majority owned by the taxpayer - broke ranks with the rest of the industry by slashing its overdraft charges.
