Finance & Economics

Santander Launches Overdraft-Free Checking Accounts

Bank Santander has introduced a checking account, which is designed to provide customers of this financial institution with the opportunity to avoid overdrafts.

Santander Launches Overdraft-Free Checking Accounts

The lender reported about this innovation in a press release, published on Thursday, November 16. The main settlement account of this financial institution allows consumers to spend their funds and at the same time not risk such outgoings as charging fees from partners or overdrafts.

The bank’s press release contains information that as part of the new solution, overdrafts are eliminated and a monthly fee of $4 is provided, which is automatically withdrawn if any account holder is under 26 years old or at least 65 years old.

The financial institution has also launched additional benefits to its Simply Right checking account and Santander savings account, which is designed for consumers under the age of 26. In this case, the innovations are the cancellation of the monthly fee and the fee for cash withdrawal, the amount of which has been reduced to $ 2 at ATMs that are not part of the bank’s operating network. For a savings account, there is no fee for withdrawing money from ATMs outside the functional infrastructure of Santander.

Innovations of a financial institution are relevant in the context of current realities. For example, in the United States, according to the results of a special study, it was found that 20% of consumers of banking services use an overdraft due to a lack of funds in their accounts. About half of the clients of financial institutions who are on the verge of bankruptcy also face a similar situation.

Experts say that overdrafts have actually become synonymous with a difficult financial situation. According to them, the financial flexibility of this functional solution used in the banking sector does not cancel the mentioned conclusion. Experts also note that according to statistics, the vast majority of consumers who have faced overdrafts continue to overcome various material difficulties in the future. Moreover, in the United States, almost two-thirds of overdrafts have led to more serious problems related to the availability of bank lending services.

As we have reported earlier, Santander Bank Partners With DailyPay to Offer On-Demand Pay.

Serhii Mikhailov

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Serhii’s track record of study and work spans six years at the Faculty of Philology and eight years in the media, during which he has developed a deep understanding of various aspects of the industry and honed his writing skills; his areas of expertise include fintech, payments, cryptocurrency, and financial services, and he is constantly keeping a close eye on the latest developments and innovations in these fields, as he believes that they will have a significant impact on the future direction of the economy as a whole.