Santander Introduces Bank Accounts sans Fees

In a move which has confirmed the rapidly growing competition in the banking sector, Abbey and Alliance & Leicester owner Santander has announced the launch of its fees free bank accounts, which will not impose any fees even if holders end up exceeding their over draft limits.

The account will only be offered to customers who have a mortgage with the bank and, in addition to no account fees, will not levy any fee when the holders withdraw their money at an overseas location. The no fees accounts will be available starting January.

The introduction of the new accounts have come right when the High Court has passed its long awaited judgement on the "fairness of the high penalty fees" that banks charge customers who exceed their overdraft limits. Next Wednesday, the Court is expected to rule a decision on whether or not the Office of Fair Trading can look into these penalties, which are sometimes as high as ?35.

"We have become the most efficient bank in the UK and so can offer more value to our customers", shared Chief Executive of Santander UK António Horta-Osório, who was quick to assert that with the move, the bank is looking to add more customers to its base. Recent figures have revealed that out of Santander's 2 million mortgage customers, only 250,000 had an account with the bank.