Thousands of Santander small business customers have been told their accounts will now cost £7.50 a month, despite originally being marketed as ‘free forever.’ Around 230,000 businesses are affected with the High Street bank stating that it is 'no longer viable' to keep the accounts free. It argues that it will provide a better service and more interest for the extra £20.7million the charge will bring in annually. For the monthly fee, it says there will be more business managers to talk in local Santander branches, while it will offer a higher rate of interest – 0.25 per cent – paid on balances held in the business current accounts.

It has been sending out letters alerting those business banking customers who will be hit with the change, which will come into force later on in the year.
But the move is sure to irk those who took out the account on the promise that it would be free forever. Those that are unhappy with the £90 a year charge have been told to complain to Santander in the first instance by both the Financial Ombudsman Service (FOS) and the Financial Services Authority (FSA) and seek an answer within the required eight weeks.....Read more here: Santander to charge 230,000 business customers for their 'free' accounts | This is Money