MSE News: Santander launches cashback current account

Zandoni

philbostavros wrote: »

We had a reveiw with our local Santander branch last week to update our ISAs etc and the manager suggested the 123 account (and cashback credit card).

The only downside I could see was that we would loose the free travel insurance provided by our existing Premier a/c (old legacy A&L account).

He was very helpful and suggested we could keep that running and open the new 123 account, as long as we funded it with at least £500/month, and 2 DDs (you can't fund it from the existing Santander current account. Only thing is we will have to do the moving of DD etc ourselves.

As an annual travel insurance policy would cost us around £120+ (oldish with pre-existing medical conditions), this seems like a good option.

Appointment on Tuesday in branch to open, so will see if it all goes to plan.

While you are there ask how long it will be a small monthly fee and if they can guarantee the benefits will continue for many years.

I feel that this account is just a way to get people to accept paying for their accounts, then before you know it the benefits are gone and the monthly fee rises.

innovate

Zandoni wrote: »

I feel that this account is just a way to get people to accept paying for their accounts, then before you know it the benefits are gone and the monthly fee rises.

You may well be right - - - as and if they do that, everyone can pack up and leave for a different current account.

The potential of them withdrawing the benefits at some time in the future should not be enough reason to turn down the cashback and interest on offer for now.

Switching current accounts isn't hard to do.

And you don't have to close your existing current account to take advantage of the Santander 123, either.

If you run multiple current accounts, you just have to make sure you know what money you have where at any one point in time. Excel can help with this, or just a well-kept handwritten record.

Zandoni

innovate wrote: »

You may well be right - - - as and if they do that, everyone can pack up and leave for a different current account.

As long as they don't make free accounts harder to get.

innovate

Zandoni wrote: »

As long as they don't make free accounts harder to get.

There's perhaps a bit of an obsession with 'free' accounts.

Just because they don't charge you a regular fee on "free" accounts, doesn't mean your account actually gets the best interest, or the best available deal overall.

And if they do charge you, you don't necessarily know whether you get the best deal, either. Chances you are not.

You just have to keep an eagle eye on your money.

Anthorn

I'm with Santander actually in the former Alliance & Leicester stream but I'm not tempted to change to the 123 current account: Taking into account the £2 per month / £24 per year fee I would make perhaps 35p per year. Also if I changed accounts I would possibly lose my ability to make card withdrawals at the post office but that depends on whether a new debit card is issued with different first six digits. Lastly I would never keep £1000 minimum in my current account to get the measly 1.0% interest offered and keeping £2,000 or £3,000 in there would be more unlikely than finding a gold nugget stuck to the sole of my shoe.

philbostavros

Update on earlier post:

Visited branch and opened up new 123 current account. Adviser was very helpful and confirmed requirements for keeping legacy Premier current account open.

All was completeed with a minimum of fuss and new account had appeared on our online banking by the time we got home.

True, the 123 T&Cs could be changed in the future, but as others have said, you can move accounts/company, should the need arrise.

The 3% interest on balances between £3k and £20k compares favourably with our eSaver Iss 5, so it's not sweat keeping the required balance in the 123 account instead. (If the rate stays the same, it will also avoid having to juggle the eSaver every year, when the rate drops).

Alchad

Hi,

Not sure if this is the right place to post this question, but...

We have had a joint Abbey/Santander current and credit accounts for nearly 20 years, I recently applied online for a 123 account (can't remember now but think I asked to change the existing current account into the 123 account).

Anyway I have just received a letter saying they have refused the application and mentioned an Experian credit report. Now we own our own house, have no mortgage, no loans of any form whatsoever, and both have very good pensions.

So I'm just completely baffled as to why the application could be refused. My other half's initial reaction (and mine) is to move her existing ISA and close all the accounts, but just wondered if anyone could suggest any logical reason as to why the application was refused. As. I said I thought it was just literally a case of changing the existing joint Santander current account into a 123 account, but obviously not.

Thank you

innovate

If they mention Experian as the reason, something appears to be wrong with what Experian have on file for you. This can be due to an error by Santander, any other financial outfit you deal with, your landline provider, your mobile provider..............

Best to check out your credit files, and get them corrected.

Ultrasonic

philbostavros wrote: »

The 3% interest on balances between £3k and £20k compares favourably with our eSaver Iss 5...

Just in case you were thinking of keeping money in your current account rather than your ISA, remember that you will be taxed on the interest in your current account, so at best you'll be only actually be earning 2.4% (less if you're a higher rate tax payer).

Childintime

I am an existing Santander customer who opened a new 123 account via topcashback, and then arranged the DD transfers etc myself.

My £55 cashback has now been confirmed!

:T