Banco Santander ends charges for 2m customers

20th January 2006, Comments 0 comments

20 January 2006 , MADRID — Banco Santander, Spain's largest bank, is to stop charging administrative and service fees for 2.2 million retail clients.

20 January 2006

MADRID — Banco Santander, Spain's largest bank, is to stop charging administrative and service fees for 2.2 million retail clients.

The move which will end fees on a series of bank products and transactions and could provoke a revolution in Spanish banking, as competitors are expected to follow suit.

Fees and commissions charged by banks have been a major source of complaints from consumer groups.

Customers will no longer have to pay fees on current and savings accounts, the issuing and renewing of credit cards, money transfers within Spain and the rest of the European Union.

Fees will also be cut for checking deposits and cash withdrawals from cash machines.

But to benefit from the cut in fees, customers must have a mortgage with Santander, get their pay or pension paid through the bank or have a pension deal with the company.

Santander has a reputation for innovative deals.

In the 1980s, the bank broke with what was effectively a cartel to offer high-yielding deposit account.

It was followed swiftly by other banks.

[Copyright EFE with Expatica]

Subject: Spanish news

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