Spanish launch current account shake-up

by Ed Bowsher on 19 November 2009  |  0 comments
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Santander is launching a highly attractive current account in January. The only catch is you'll have to have a mortgage with the bank.

Spanish bank Santander clearly wants to shake things up in the UK banking market. Its first salvo as a rebranded bank will be to launch a highly attractive new current account in January. The account's big plus is that will have no overdraft fees whatsoever - even for unauthorised borrowing. 

What's more, there will be no charge for use of ATMs worldwide and no foreign exchange fees either. You'll also be able to use your debit card for purchases worldwide on a fee-free basis. 

On top of all that, you'll get 6% interest on any credit balances up to £2500 for the first year. That's provided you pay in at least £1000 into the account each month. 

This is a very impressive package. And there appears to be only one catch. You have to take out a mortgage with Santander. For many people, that won't be a major imposition. Abbey and Bradford & Bingley are set to rebrand as Santander in January 2010 and some of the best mortgages currently on the market come from Abbey. For example, Abbey has a 2-year fixed rate deal at 3.69% for homebuyers with a £799 fee.  So if you have a 30% deposit, that deal is hard to beat. 

I should stress that I'm relying on a press release for information on this account; I've not seen the terms and conditions. But assuming there are no hidden catches, this seems like a great account. Well done Santander!