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    • No_Name
    • By No_Name 18th Apr 17, 1:25 PM
    • 59Posts
    • 0Thanks
    No_Name
    Santander 123 current accounts
    • #1
    • 18th Apr 17, 1:25 PM
    Santander 123 current accounts 18th Apr 17 at 1:25 PM
    Is it still viable to have these accounts if only holding say 8k in each account?

    The rate has gone down but the monthly fee has gone up. Ignoring cashback, is it still worth hanging onto these in case the rates do go up?

    Or would it be better just to close these down and re-apply?

    Bear in mind that I'm an early adopter, meaning I have more than 1 - 2 accounts!
Page 1
    • picks
    • By picks 18th Apr 17, 1:41 PM
    • 140 Posts
    • 55 Thanks
    picks
    • #2
    • 18th Apr 17, 1:41 PM
    • #2
    • 18th Apr 17, 1:41 PM
    Is it still viable to have these accounts if only holding say 8k in each account?

    The rate has gone down but the monthly fee has gone up. Ignoring cashback, is it still worth hanging onto these in case the rates do go up?

    Or would it be better just to close these down and re-apply?

    Bear in mind that I'm an early adopter, meaning I have more than 1 - 2 accounts!
    Originally posted by No_Name
    You should be able to do the sums yourself:
    Monthly interest - monthly fee = £ ?
    If you have several accounts holding around £8k I would have thought it would be better to combine them to make up £20k to avoid needlessly paying the monthly fee several times over.
    I think at the moment the chances of the interest rate going up is about the same as the likelihood of Donald Trump joining a Catholic Convent.
    Last edited by picks; 18-04-2017 at 2:08 PM. Reason: clarification
    • eskbanker
    • By eskbanker 18th Apr 17, 1:43 PM
    • 4,223 Posts
    • 3,953 Thanks
    eskbanker
    • #3
    • 18th Apr 17, 1:43 PM
    • #3
    • 18th Apr 17, 1:43 PM
    If you're holding £8K in a 123 account without any DD cashback, then you're earning £8K * 1.5% - £60 = £60 = 0.75% interest.

    So, in simple interest terms, if you can beat that elsewhere (shouldn't be difficult!) then do so.

    Nobody has a crystal ball about rates but at some point base rates will increase - however, Santander may choose to handle this by introducing new products rather than bumping up rates on existing ones....
    • chockydavid1983
    • By chockydavid1983 18th Apr 17, 2:39 PM
    • 362 Posts
    • 205 Thanks
    chockydavid1983
    • #4
    • 18th Apr 17, 2:39 PM
    • #4
    • 18th Apr 17, 2:39 PM
    Depending on what other accounts you have, it can probably be pretty easily beaten elsewhere.
    I have a 123 lite for cash back and so I can have the regular saver.
    • EachPenny
    • By EachPenny 18th Apr 17, 2:47 PM
    • 197 Posts
    • 98 Thanks
    EachPenny
    • #5
    • 18th Apr 17, 2:47 PM
    • #5
    • 18th Apr 17, 2:47 PM
    I'd agree with eskbanker that any future rate increases would only apply to brand new products.

    But I would probably hedge my bets by combining money into one account to get up to the 20k limit, then downgrade the other account to the 'Lite' version. There may be no long-term benefit from doing this as the downgrade may rule out a future advantage, but it would keep a possible 'right' of having multiple accounts available for you in the future.

    And rather than just closing the accounts, always look to see if there is a switching opportunity
    • No_Name
    • By No_Name 18th Apr 17, 3:55 PM
    • 59 Posts
    • 0 Thanks
    No_Name
    • #6
    • 18th Apr 17, 3:55 PM
    • #6
    • 18th Apr 17, 3:55 PM
    Thanks for the replies. I have exhausted other decent paying current accounts except for Tesco.

    I'm also a higher tax payer!
    • EachPenny
    • By EachPenny 18th Apr 17, 4:25 PM
    • 197 Posts
    • 98 Thanks
    EachPenny
    • #7
    • 18th Apr 17, 4:25 PM
    • #7
    • 18th Apr 17, 4:25 PM
    And all the regular savers too?

    Natwest Savings Builder pays 1.5% on up to 5k, providing you add an extra 100 per month. Useful for a small amount at a similar rate to the 123 account.

    Premium bonds?
    • No_Name
    • By No_Name 18th Apr 17, 6:06 PM
    • 59 Posts
    • 0 Thanks
    No_Name
    • #8
    • 18th Apr 17, 6:06 PM
    • #8
    • 18th Apr 17, 6:06 PM
    Thanks EachPenny - wasn't aware of that Natwest saver.

    I've got most of the regular savers - FD, Nationwide, Santander, Lloyds, TSB and Halifax.

    I've still got 20k headroom on premium bonds - might need to buy myself that recurring 20,000 chances to win that million!
    • RG2015
    • By RG2015 18th Apr 17, 6:31 PM
    • 87 Posts
    • 24 Thanks
    RG2015
    • #9
    • 18th Apr 17, 6:31 PM
    • #9
    • 18th Apr 17, 6:31 PM
    The NatWest saver has an advantage of being the only regular saver allowing lump sums deposits. You can deposit £5,000 on day one and earn 1.5%. You could also choose to deposit £10,000 on day 1 but the second £5,000 only earns 1%.

    Please check the crazy rules as the £100 monthly increase is measured on the penultimate working day of the month. If you miscalculate you get no interest that month.

    I started with £4,100 and when I get to £5,000 I will transfer out £5,000 to earn something in another account and then transfer £4,200 back in after 30 days or so.

    Yes, it can get convoluted but I deem it to be a good option for the arithmetically adept!
    • EachPenny
    • By EachPenny 18th Apr 17, 6:58 PM
    • 197 Posts
    • 98 Thanks
    EachPenny
    Please check the crazy rules as the £100 monthly increase is measured on the penultimate working day of the month. If you miscalculate you get no interest that month.

    I started with £4,100 and when I get to £5,000 I will transfer out £5,000 to earn something in another account and then transfer £4,200 back in after 30 days or so.
    Originally posted by RG2015
    The rules are certainly a challenge, as is interpreting the monthly statement!

    I started mine on £5000 to maximise the 1.5% benefit and add £100 per month - it doesn't matter much that the extra 100's are only getting 1% as the place they are coming from only pays 1.05% so I'm not losing much. I will keep it going like that for as long as possible, because I want to minimise the number of times the £5000 has to be taken out of the account for a month. However, with newer issues of regular savers coming out it may be everything goes elsewhere anyway
    • ceredigion
    • By ceredigion 18th Apr 17, 7:22 PM
    • 2,071 Posts
    • 2,301 Thanks
    ceredigion
    Is it still viable to have these accounts if only holding say 8k in each account?

    The rate has gone down but the monthly fee has gone up. Ignoring cashback, is it still worth hanging onto these in case the rates do go up?

    Or would it be better just to close these down and re-apply?

    Bear in mind that I'm an early adopter, meaning I have more than 1 - 2 accounts!
    Originally posted by No_Name

    Quiet tip
    If you were to put all the £s in one of the accounts. Remove the DDs from the other account and not pay anything in, the fee isn't taken leaving a dormant 123 account
    • justwingingit
    • By justwingingit 18th Apr 17, 8:01 PM
    • 4 Posts
    • 12 Thanks
    justwingingit
    I've been a Santander 123 account holder since September and I've recently had an email from Santander from being an account holder offering a 12-month regular saver with a 5% interest rate. Despite this, the maximum monthly deposit is £200 - but it's definitely worth it for £2400 altogether. This is exclusive to Santander 123 account holders too or alternatively, if you don't already hold one of these accounts, the interest rate is halved at 2.5%. Worth looking into to utilise the account a bit more.
    • stoozie1
    • By stoozie1 18th Apr 17, 8:10 PM
    • 153 Posts
    • 54 Thanks
    stoozie1
    I did have 3 santander current accounts but now have 1 joint lite one to max the cash back on utilities but keep the ability to have 2 x 5% regular savers from one lower fee.

    Moved the rest of the money into 3-5% paying accounts.
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