Santander123 As A Savings Account?

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  • mjjp2
    mjjp2 Posts: 1 Newbie
    edited 22 February 2014 at 2:24PM
    I was buttonholed by a sales person during a visit to the local Santander branch. The 3% interest rate was better than any other rate available and she persuaded me to open an account. I said it seemed so good that I could transfer all my savings into the account. She didn't warn me about the £20000 limit. When my 12-month ISA bonus rate expired I put all my retirement savings into the 123 account, but discovered 6 months later from a TV ad that I'd lost all the interest on the retirement savings over 20k that I'd put into the 123 account. I'm a pensioner, already draining away my life-savings through inflation. When I complained to Santander they accepted that I was telling the truth (I do have a witness) but dismissed my claim for compensation on the basis that I should have read the small print. So much for taking responsibility for mis-selling and verbal aspect of the contract I signed. Beware of deceptive and misleading sales staff in Santander branches! I've been advised by various people to keep complaining and also to go to the Banking Ombudsman. I will. :mad:
  • eskbanker
    eskbanker Posts: 30,399
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    You can have two 123s per person so can get interest on up to £40K in total provided you satisfy all the other terms (DDs, funding, etc). You might be able to convince Santander to make a payment equivalent to a second £20K's worth of interest - the £20K limit is fairly well publicised in the product documentation though (rather than having to wade through the really small print), so I can see where they're coming from about your responsibilities to read about what you're signing up to.
  • Archi_Bald
    Archi_Bald Posts: 9,681
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    mjjp2 wrote: »
    .....but discovered 6 months later from a TV ad that I'd lost all the interest on the retirement savings over 20k

    Sorry, no sympathy from me.

    Are you seriously suggesting that you did not check your current account, with all your retirement savings in it, not once in 6 months? If you did check it, why did you not notice that you did not get 3% on everything?

    It's a pretty sad state of the nation if even people with a whole lifetime of experience don't feel responsible for their own actions.
  • I don't want to comment about this case specifically as I don't know the poster, or the full facts of the situation.

    I do think though that anyone selling financial services has responsibilities - moral, ethical, and regulatory which differ from other selling situations. I oversaw my own late mother's affairs in her retirement and to her the people in the Building Society (her building society as she thought of it and as the advertisers reinforced) as friends. I recall her horror when I described them as sales people and she corrected me saying that banks didn't sell things they were advisers - giving advice. My mum was no fool - but a product of her generation, and was not well educated or informed.

    I have a 123 account which I opened online recently and it isn't a simple product. I was aware of the rules - though if I'm honest I am awaiting my first interest payment to confirm that I have set it up ok and that the 2 direct debits are acceptable to them and that the £500 transfer went in on time. I must say for example I hadn't appreciated I could have two 123 accounts at first though but as I wasn't looking to do that I probably didn't notice. As an online buyer I accept that my situation differs from someone receiving "advice".

    There are lots of people who don't find money management interesting, or easy to understand. Look up the facts on the numbers of people who don't understand simple percentages for example.

    I am not a particularly kind/sensitive person and I have spent a career in sales but if I felt I had sold a pensioner an unsuitable product which they hadn't fully understood I should find sleeping at night quite difficult! I hope Santander feel the same.
  • ColdIron
    ColdIron Posts: 8,901
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    edited 22 February 2014 at 5:00PM
    Without wishing to be uncharitable the £20,000 limit has always been clearly stated on any material I have ever seen. As mentioned, they even say it on the telly

    Salesmen do not act in loco parentis and to expect them to do so is somewhat naive

    Ultimately we are all responsible for our own money and don't forget that we all sign a declaration that we have read and understood the Terms and Conditions
  • I was thinking about moving my ISA savings into this account because i am getting a lot less interest on the savings in my ISA (about 12k) surely I would be better off getting a decent interest rate than a rubbish one tax free? I didn't know i had to have 2 direct debits though so thanks for pointing that out!
  • The best easy access ISA interest rate is 1.75!!
  • Archi_Bald
    Archi_Bald Posts: 9,681
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    ColdIron wrote: »
    Ultimately we are all responsible for our own money and don't forget that we all sign a declaration that we have read and understood the Terms and Conditions

    I agree entirely. If somebody feels uneasy about T&Cs, or generally handling their finances, they should be asking for help from a family member or friend, or the CAB, or even an online forum like MSE. Plenty of written information available, plenty of places to go to, and not doing anything pro-active for 6 months to check the transactions on a current account is pretty much unforgiveable.

    Imnoexpert - the selling of a current account does not constitute "advice" in financial terms. All the 123 literature and website has always been abundantly clear on the interest. There is even a calculator on the Santander website that allows people to calculate what they should be expecting in terms of interest (and cashback). The OP did state that they understood the TV ad, so there's a fair chance that they would also have understood the 123 leaflets and the 123 website if only they had tried.

    Of course it is annoying not to have received interest for 6 months, but the OP has, IMO, only got themselves to blame for it.
  • Archi_Bald
    Archi_Bald Posts: 9,681
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    B1gAl wrote: »
    I was thinking about moving my ISA savings into this account because i am getting a lot less interest on the savings in my ISA (about 12k) surely I would be better off getting a decent interest rate than a rubbish one tax free? I didn't know i had to have 2 direct debits though so thanks for pointing that out!

    You also need to pay in £500 each month, otherwise you get no interest. And the account costs £2/mth. Perhaps read up about the account on the Santander website?

    Whether it is better for you to have the money in a current account with a variable rate instead of in an ISA only you can tell. Once you take your money out of the ISA, you lost the tax-free wrapper on it for good. To get £12K back into a cash ISA will take you at least 2 tax years.

    If you are planning on spending the money in the next couple of years or so, though, you might as well chance it with a current account.
  • I have just applied for the Santander 123 account, having read the info on the best savings rates on this site and after asking a few members of this site (Thanks Archibald) who gave some great factual answers with no bias.
    IMHO you should research fully, moneysaving expert is there to guide and support. I'm a big fan and have introduced friends and family to its benefits! If only I had visited sooner......:money:
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