Some 3.6 million Santander customers will be hit by fee increases on the bank's flagship 123 range.
From 11 January, the charge for the 123 current account will rise to £5 a month from £2, and monthly fees on the credit card will be hiked 50% to £3 a month.
Santander more than doubles its 123 fee
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Some 3.6 million Santander customers will be hit by fee increases on the bank's flagship 123 range. From 11 January, the charge for the 123 current account will rise to £5 a month from £2, and monthly fees on the credit card will be hiked 50% to £3 a month. The cashback offers on the current account and credit card will not change for existing customers. However, credit card cashback will be capped for new customers. The 123 credit card pays 1% cashback on supermarket shopping, 2% on spending in department stores at 3% on transport. From January, each element will be capped at £3 a month. According to Santander's latest annual report, some 3.6 million people in the UK held at least one 123 product in 2014 and Santander increased its current account users by 47% over the year. Hannah Maundrell, editor of money.co.uk, said: "It seems this 'venus fly trap' was a great catalyst for the current account switching market but now it's got people on board it's becoming less of an attractive deal from January 2016." Moneywise Verdict The current account is now much less attractive for smaller balances. Interest on deposits of less than £3,000 won't cover the monthly fees, even for people who don't pay tax on their interest. The cashback scheme remains attractive and people with large balances will still get plenty value from the account. Someone with the optimal £20,000 balance will get £540 interest before tax, after paying fees.
Source Moneywise http://ift.tt/1LtSYrP
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