Santander customers will soon be able to make withdrawals from the bank's cash machines in Spain for free.
The move comes as Santander begins its rebrand of Abbey and Bradford & Bingley businesses in the UK.
As from next week Santander customers using ATMs in Spain will pay no cash handling fee and no foreign exchange fee.
Alison Brittain, executive director of UK retail distribution for Santander, said: "Providing free access to Santander ATMs in Spain could save our customers over £2 million a year in ATM charges.
"Spain has always been a popular destination with Britons, and we wanted to reward the loyalty of our customers by saving them some money when they visit."
According to the bank, in the last year 22 per cent of all withdrawals made from an Abbey bank account using ATMs in overseas destinations, were made in Spain.
It said this latest initiative was being made as part of its bid to reward its most loyal customers.
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