Lifestyle

Major Bank Changes Coming in August as Santander Closes Branches and Fees Rise

Published on July 30, 2025

Big changes are coming to UK banks in August, and a finance expert is warning customers to prepare for some important shifts. Caroline Butler, a finance specialist who often shares her expertise on TikTok, broke down the upcoming changes that could affect many people’s banking experiences. She said, “There are major changes coming to UK banks in August and you need to know about them.”

One of the biggest shake-ups will affect Santander customers. The bank is closing 14 more branches this month, as part of a larger plan to shut down 95 branches across the UK. Caroline called it a potential “cash chaos” situation for customers.

Bank Customers Face Big Changes in August with Branch Closures and Higher Fees (Getty Images)

She explained, “Santander are shutting down 14 more of their branches in August – that’s part of their planned 95 closures across the UK in total.” On top of that, five other Santander branches are going “counter-free,” which means customers will have to rely on ATMs or Post Offices for basic services. The affected branches are in Gravesend (Kent), Allerton (West Yorkshire), Camberley (Surrey), Orpington (London Borough of Bromley), and Rotherham (South Yorkshire), Express reports.

Earlier this year, Santander confirmed it would close several more branches through 2025, though the exact dates for some of these closures are still to be determined. For customers who rely on in-person services, this is likely to be frustrating news, especially as more branches are expected to shut down in the months to come.

At NatWest, business customers will also feel the pinch. Starting in August, the bank is raising its fees for cash handling. Caroline said, “They are increasing cash handling fees, from 70p to 95p per £100.” NatWest is also making changes to its cheque processing terms and BACS transactions. Caroline added, “This will also increase – from 70p to 75p – while BACS transactions will increase from 18p to 21p.” While these price hikes might seem small individually, she pointed out, “It will all add up.”

NatWest responded to these changes, saying in a statement, “NatWest is changing the prices of some business banking services. It’s been seven years since day-to-day banking charges have changed for our business customers. The cost of providing services has gone up so we’ve had to review our charges.” For business owners, these fee increases could impact their bottom line.

Another shift comes from First Direct, which is bidding farewell to paper statements. Caroline explained that the bank is making the move to a fully digital experience. From August, customers will no longer receive paper statements for savings accounts, and instead, they’ll need to use First Direct’s app or website to access transaction details. But that’s not all – for savers, Caroline shared some unfortunate news. “The bank rate is set to drop from 4.25 to four per cent on August 7,” she said. This change will mean “shrinking returns” for savers, making it harder for people to see their savings grow at the same pace.

Prepare for August Bank Overhaul with Santander Closures and NatWest Fee Increases (Photo by PAUL ELLIS/AFP via Getty Images)

First Direct has recently introduced some new digital features to enhance its mobile banking experience. The bank stated, “When it comes to making banking better, we never think our job is done. It can always be improved, always be quicker, and always make your life easier.” It seems the bank is doubling down on improving its tech, but for customers used to paper statements, the transition could take some getting used to.

With all these changes coming to the forefront in the next few weeks, it’s clear that August is shaping up to be a month of big adjustments for UK bank customers. Whether it’s branch closures, rising fees, or a shift to digital, these changes could have a significant impact on how people manage their finances.

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