Santander 123 account

cynicalmum

This sounds good but I am worried. I think they are trying to phase out current accounts that are "free" to run. If I switch to this from my "free" current account, can they at some future point change the terms so its not so generous to keep my money in there? My old bank account would no longer exist and I would be stuck with a more expensive way of running my current account.

Midzone

Why would you old bank account no longer exist? Keep it open just in case - always wise to have a least one other Current Account with a different bank.

I know Santander gets bad press on here but I transferred to the 123 Account last month - it was problem free BUT I keep my Natwest account open just in case

cynicalmum

They make it difficult as you need to run them both as your "main" account, ie pay in at least £500 every month and have at least two direct debits going out (for the original one anyway. The 123 account needs to have more direct debits than that). Plus, you get to keep the same account number, sort code and PIN numbers when you switch. Its more of an upgrade than a whole new account.

innovate

cynicalmum wrote: »

They make it difficult as you need to run them both as your "main" account..........

They make it easy for you to earn extra money - e.g. from cashback from your qualifying direct debits, and from interest. If this doesn't work out as a positive sum for you, however, there is no reason why you would want the 123 current account, really.

If you do want it, however, there is no reason why you shouldn't have other current accounts. Plenty of people have current account at Santander, First Direct, Nationwide, Halifax, so that they can make use of the offers from those banks.

You just need to be able to manage your money efficiently. A spreadsheet which you keep up-to-date will go a long way towards that.

There is a long thread on the 123 account here