Changes to Santander UK Corporate Accounts Terms and Conditions

We’re making some changes to our Santander UK Corporate Accounts Terms and Conditions and want to let you know what this means for you. These changes take effect from 15 April 2021, except where stated otherwise.
Changes

What type of changes are we making?

The list below highlights the main changes outlined in the documents. We’ve also updated the general layout of your Corporate Terms and Conditions to make them easier to understand.

  • Regulation 94 of the Payment Services Regulations will no longer apply. This will limit our liability in relation to incorrectly executed payments on your account (for businesses with an annual turnover of £6.5 million or more only).
  • We’re removing email as a method by which you can give us payment instructions for withdrawals or payments from certain types of accounts (but you’ll still be able to make these transactions using the other methods we already have in place).
  • With effect from 1 April 2021, we’re introducing a “Notice Reversion rate” on GBP corporate notice accounts meaning that the credit interest rate on the funds under notice of withdrawal will be reduced for the duration of the notice period.
  • We’ll need to receive a withdrawal request on GBP corporate notice accounts by 1pm on a working day in order for it to take effect that day.
  • You’ll no longer be able to pay foreign currency notes and coins into your account.
  • We’ve included a definition of “Insolvent” so that it’s clear what it means when this term is used in the Terms and Conditions.
  • We already have the right to introduce negative interest rates or fees or charges if Bank of England reference interest rates become negative, but we’ve now explained how any such charge would be taken from your account.
  • We’ve clarified when you’ll be invoiced charges for transactions that take place on your account on the last day of the charging period when that day is a Sunday.
  • We’ve given more detail on what happens when a Time Deposit or Partial Withdrawal Time Deposit matures where we don’t have your instructions on repayment.
  • We’re introducing a new US dollar currency notice account.
  • For transactions in a foreign currency using a debit card, we’ve explained how you can get more information about the exchange rate used and transaction costs.
  • We’ve amended some definitions as a consequence of the UK leaving the European Union.
  • We’ve explained further what we mean when we say that your account is not transferable.

What does this mean in practice?

Please click on the titles below to find out more about each of the changes.

This section only applies to customers who have an annual turnover of £6.5 million or more

The Payment Services Regulations 2017 (PSRs) allow banks to agree with their customers that certain provisions of the Regulations do not apply. This is known as the “Corporate Opt Out”. Santander has already agreed with its customers who have an annual turnover of £6.5 million or more, through its Terms and Conditions since January 2018, that Regulations 91 and 92 of the PSRs do not apply. These particular Regulations apply to any incorrect or missing payments such as:

  • payments that go to the wrong payee;
  • payments for the incorrect amount; or
  • payments that are delayed.

This means that unless Santander has been negligent in carrying out your instructions, or acted fraudulently or with wilful default, we will not be liable for incorrect payments and do not have to restore your account to the position it would have been in had the payment been made correctly.

Regulation 94 of the PSRs is also relevant to liability in relation to incorrect or missing payments and Santander is now seeking to agree that this Regulation, in addition to Regulations 91 and 92 of the PSRs will not apply. This means that in addition to having no liability to restore your account to the position it would have been in had a payment been made correctly (unless we’ve been negligent, fraudulent or acted with wilful default), we will not be liable for any other interest or charges you may incur as a result of the payment being made incorrectly.

This change will take effect from 15 April 2021 and by continuing to use your account after this date, you accept this change and agree that this Regulation will not apply.

GBP corporate notice accounts and introduction of a Notice Reversion rate

In future we must receive any notice from you to make a withdrawal from your GBP corporate notice account by 1pm on a working day. If we don’t receive notice before this time then the notice period will begin on the next working day. You will also be able to cancel any notice of withdrawal you have given us as long as we receive the notice of cancellation at least two working days before the end of the notice period. We will usually contact you at least two working days prior to the payment date to confirm the payment is still needed and to complete our security checks before releasing the payment.

Removal of foreign currency cash services

We’ve removed reference to the paying in of foreign currency cash (notes and coins) as we no longer offer this service.

The definition of insolvent

We’ve included a definition of “insolvent”, so that it’s clear that where we set out the consequences of your being insolvent (such as our right to close your account), you know when this will happen.

Consequences of negative interest rates being introduced

Our Terms and Conditions already give us the right to introduce negative interest rates or fees or charges if interest rates (including any External Reference rate) turn negative. However we’ve now set out how we may debit any interest charged at a negative rate or other fee or charge should we introduce this.

Charges for transactions on the last day of the charging period

We’ve clarified that when there are transactions on your account on the last day of a charging period and that day is a Sunday, you’ll be invoiced for any transaction charges relating to those transactions on the invoice for the next charging period. You’ll still continue to earn interest on payments made into your account on that day.

Maturity of a Time Deposit or Partial Withdrawal Time Deposit

We’ve explained in more detail what happens when your Time Deposit or Partial Withdrawal Time Deposit matures and you’ve not given us instructions on where you want the maturity proceeds to be paid.

Currency Notice account

We’ve introduced a US dollar currency notice account and our Terms and Conditions have been updated to set out the conditions relevant to this new account. The minimum deposit will be the currency equivalent of £50,000 and deposits can only be made in US dollars. You can find out more information about this new account by contacting a member of your Relationship Team.

Debit card transactions in a foreign currency

We’ve explained how you can find out the exchange rate used to convert foreign currency transactions into sterling when you use your debit card and how the costs compare to exchange rates used by the European Central Bank where transactions are in an EEA currency.

Changing definitions and other consequences of the UK leaving the European Union (“EU”).

We’ve updated the definitions of “EEA payment”, “International payment” and “SEPA” so that it’s clear that the UK is now outside of the EEA. The Regulations governing payments processing between banks have changed now that the UK has left the EU but we are not changing our payments processing in any way. However other banks in the EEA may treat some payments received from or made to us differently, for example the other bank (or an intermediary bank) may charge or deduct a fee for receiving or sending a payment. So the amount received by you might be less than you thought you would receive or the amount received by the beneficiary may be less than you send. Even when we have complied with our obligations under the Regulations in making a payment to an EEA beneficiary bank, that beneficiary bank may in future treat the payment differently, for example in how quickly it makes the payment available to the beneficiary and how much assistance it provides if there are any issues with the payment.

Your account is not transferable

We’ve clarified what this Condition means where it appears in the Terms and Conditions.

What if you’re not happy with the changes to your Terms and Conditions?

If you’re happy with these changes you don’t need to do anything as they’ll happen automatically on the dates specified, as appropriate. If we don’t hear from you before then we’ll assume that you accept the changes.

If you don’t accept these changes we may have other account options that better suit your needs, which can be viewed online. You can also close your account at any time before the changes take effect without additional charge by contacting your Relationship Director or contacting our Customer Service Centre. However the relevant notice period will apply if your turnover is above £6.5m and you’re closing your GBP corporate notice account. Please note that you’ll need to pay any outstanding charges before closing your account.