santander zero account - will I be better off?

ali-t

I am pretty dense when it comes to financial stuff, can sniff out a bargain at 100 paces but not a clue when it comes to the rest of it so am in serious need of some help.

My current situation is I have a current account, mortgage and unused saving accounts with A&L/santander. I have around £2K a month going into the current account and have a £1500 overdraft that I use to the hilt every month. This costs me £5 per month in fees.

I have 3 seperate loans on the mortgage with varying interest rates from 1.99% to 4.99% totalling around £50K. I also have a loan with them that is due to be paid off in the next year and a half.

The zero account states I would get 5% interest and there would be no fees but there must be a catch. I used to get quite a good rate of interest on the current account but am sure it is minimal now. I wouldn't get the £100 transfer as I am already with the bank.

http://http://www.santander.co.uk/csgs/Satellite?appID=abbey.internet.Abbeycom&c=Page&canal=CABBEYCOM&cid=1237851350496&empr=Abbeycom&leng=en_GB&pagename=Abbeycom%2FPage%2FWC_ACOM_TemplateT2


Any thoughts about this account and whether it is worth trying it out or is there something I am missing?

agsnu

You would be even better off leaving Santander.

ali-t

agsnu wrote: »

You would be even better off leaving Santander.

I have been with A&L for years and haven't had any problems with them. They remove charges when requested and haven't messed anything up for me. Perhaps changing the account will be the catalyst that leads to despair on my part?

jen245

They still charge 12.9% (variable) for overdrafts on the zero account, so youre still paying for the overdraft. The 5% on credit balances is irrelevant really, as it doesnt sound like you are in credit enough to benefit from the rate. If you want to stick with santander, maybe look at their overdraft account, its 0% for the the first 12 months, might give you a chance to start paying it off

Degenerate

For as long as they charge you £5 pm, stick with what you've got. If you're using a £1500 overdraft "to the hilt" it will cost you more than that at 12.9% interest. Having said that, you may find Santander change your charging scheme shortly anyway to bring it into line with their other accounts. If it goes to £10 a month then the difference will be borderline and could go either way depending on your usage pattern.

Bonbon

I have just been moved from my normal Satander current account the the Zero one. I asked about using my debit card abroad and they said it was free to use if I had the Zero.They checked my details and changed it straight away. You must put £1,000 a month and have £10,000 in savings with them to qualify. My b/f was refused because he didn't have his savings with Santander.

ali-t

bonbon I have a savings account with them but it only has £1.30 in it! No other savings. i thought I would still be eligible as I have a mortgage with them.

thanks degenerate, my maths brain is very poor but that makes sense.

ses6jwg

Anyone who has had more than 10k in savings with Santander for the last 3 months, a santander mortgage not in arrears, or a santander investment, qualifies for the zero account.

You can upgrade to it and keep your existing card, cheque book, account number, but you must meet the above criteria and pay £1k in, and have 2 active mandates to qualify for the upgrade.

they will downgrade you if you do not meet the criteria when reviewed in future