Santander extends eligibility of its zero current account

Santander has extended the eligibility for its Zero current account so that customers with £10,000 savings can now take advantage of the UK’s first fee free current account.

Until now, Zero, which rewards customers who use Santander as their main bank, was available only to customers who have a mortgage or an investment product with Santander, so the move to extend eligibility to savings customers now makes the Zero account an option for around 70% of the UK’s adult population, the bank claims.

The bank is also offering £100 cashback to customers who switch to the Zero current account which has no fees on arranged or unarranged overdrafts, has free ATM access around the world and does not charge customers a fee for making purchases overseas when they use their Zero Visa debit card.

Interest on overdrafts is charged at a rate of 12.9% EAR and there is a market leading in-credit interest rate of 5% on balances up to £2,500 for customers who pay in £1,000 a month for the first 12 months.

'It’s important that customers who bank with Santander can take advantage of the benefits we offer, which is why we're opening up our Zero account to even more people. This account is unique in that it doesn't charge fees for being overdrawn, or for using ATMs overseas, or for making purchases outside the UK. In addition it pays an inflation beating 5% in-credit rate of interest on balances of up to £2,500 for the first year,’ said Nici Audhlam-Gardiner, Santander's banking director.

‘If you’re one of the millions of people who already has a mortgage, investment or savings over £10,000 with Santander then you should see what Zero can offer you as a loyal customer. Thousands of customers switch to a Santander current account every week using the bank’s dedicated switching service which takes the hassle out of switching and provides a seamless transfer for those who switch,’ he added.

Using Santander’s switching service customers can transfer all their existing standing orders, bill payments and direct debits from their old bank to the new Santander current account, expect to match their existing overdraft up to £5,000, depending on the customer's circumstances and receive a 0% EAR arranged overdraft for the first four months, depending on their circumstances.

The £100 cash bonus is available on Santander's Zero, Preferred In Credit Account, Premium and Reward accounts when a customer switches their main current account to Santander.