Santander, the high street bank with Spanish ownership and significant operations in Birmingham, has begun proactively emailing its customer base across the United Kingdom. The communications centre on a forthcoming adjustment to the terms of its popular 123 Current Account, specifically a scheduled increase in the monthly account fee.
Key Details of the Fee Change
The bank has confirmed that from the 11th of May, 2026, the monthly fee for the 123 Current Account will rise from its current rate of £4 to a new charge of £5. This adjustment will be applied retrospectively, meaning the fee displayed on a customer's statement will relate to the previous month's service. Santander has emphasised that this is the only modification being made; all other account functionalities and benefits, including the accrual and visibility of interest through online and mobile banking platforms, will remain entirely unchanged.
Customer Options and Bank Rationale
In its correspondence, Santander has provided clear guidance for account holders. Customers who are content with the revised fee structure need take no action, as the update will be implemented automatically. However, the bank has explicitly stated that any customer dissatisfied with the change is entitled to close their account without incurring any cost, both before and after the new fee takes effect.
The rationale provided for the increase points to rising operational costs. Santander cites increased expenses associated with providing the account's cashback benefits as the primary driver for the fee adjustment, stating this move is necessary to continue offering the account with its existing suite of features.
Support for Vulnerable Customers
Alongside the fee notification, Santander's communication includes a reminder of its support services for vulnerable customers. The bank has reiterated its commitment to assisting clients who may face challenges due to disability, mental health concerns, or domestic issues. It promotes its 'tell us once' policy, designed to ensure customers only need to disclose their circumstances a single time for ongoing support, accessible via phone, in-branch visits, or through online banking chat functions.
With the effective date set for May 2026, Santander notes there is ample time for customers to consider their options and decide if the 123 Current Account continues to meet their financial needs following this announced change.
