The Santander bank is to raise its fee on the popular 123 current account

I was shocked to learn yesterday that the Santander bank will raise its monthly charge from £2 to £5 – that’s a massive 150% increase!

The bank has attracted millions of new customers with its luring 123 current account. The account launched in 2012 has been offering an attractive cashback deal on household bills and an interest rate of up to 3% on balances not more that £20,000.

This fee increase is expected to start a new banking war, with many of the bank’s competitors seeing the opportunity to tempt lots of Santander’s customers away.

Santander will also increase fees on other products including the 123 credit card. The current account and credit card increases come into effect at the start of 2016 (11th January).

There are many banks already offering great deals on alternative current accounts. I will certainly be looking at these and any new options that become available. I do not feel that its customers will leave the bank as quickly and Jenson Button drives the company F1 car, but I will see what’s out there for all the Prudent Petes!