Bank customers face increase in fees

[Conniff]

Millions of current account customers are being advised to consider their options, following an increase in fees, and changes in interest rates.

From Monday, monthly charges on the Santander 123 account - held by 3.6 million people - will more than double.

 

At the same time HSBC is cutting interest payments to customers on its range of cash Individual Savings Accounts (Isas).

Barclays also announced more cash rewards for those who switch.

 

The change in Santander fees - announced in September - will see customers paying £60 a year, instead of the previous fee of £24.

The charge for its 123 credit card rises from £24 a year to £36.

 

'Do the maths'

 

Last year the Santander account proved very popular, with more than 27,000 people switching to it in a single month.

 

But experts said that - even after the changes -it still offered relatively generous interest payments of up to 3% a year, and cashback of up to 3% on some household bills.

"Don't jump ship until you've done the maths," said Hannah Maundrell, editor in chief of advice site Money.co.uk.

 

"To put it simply, you need to look at how much you're earning in interest and cashback. If it's less than the new £60 a year fee you need to take it as a wake-up call to seriously consider your options."

 

 

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