Tesco Bank scrap £5 current account fee - take that Santander!
With Santander upping the fees on their 123 account, Tesco Bank have made a move in a bid to make themselves more attractive to anyone thinking of switching accounts.
They've said that they are going to scrap a £5 monthly fee which is currently charged to its current account customers. From tomorrow (September 17th 2015), the fee will be removed, provided you can deposit £750 or more a month into your account.
If you have a Tesco Bank current account, you get 3% interest on credit balances up to £3,000, without having to pay a monthly fee.
In simple terms, customers who pay the fee will be £60 a year better off, while Santander's annual cost will be jumping up from £24 to £60.
This comes at a good time, as it really is easier than ever to switch your bank account. Your bank account can be transferred over to a new one within seven working days, and of course, Tesco Bank is part of the current account switching service. Of course, the state of Tesco's affairs regarding their retail arm, may well put you off joining up with them, but this signals that there's going to be a lot of competition over the coming months, from all corners of the current account world.