Santander Current Account new T&C's

Lith

Gromitt wrote: »

It's not the beginning at all - First Direct have had a £10 banking charge since 2007, see here: http://www.thisismoney.co.uk/money/saving/article-1604351/First-Direct-to-end-free-banking.html

I think of it more like: "Use us as your main account for paying your bills and we'll pay you to have the account, otherwise you'll need to keep at least £2000 in your account to prevent banking charges being applied".

An FD account is 'free' if you use a savings account with them, (which is what MANY PEOPLE USE) to avoid the silly £10 fee.

surprised FD won't change that.

BusinessIsBusiness

opinions4u wrote: »

Not really.

They're relying on customer inertia and using their old back book current account products to subsidise the expensive to run (but good t attracting new customers) 123 account.

By mentioning it the letter they can tell the regulator how nice they are knowing full well that 95% of customers will ignore it.

With all due respect, you dont know what you aretalking about.

There is over half a billion sitting in the 123 accounts earning no interest outside of the parameters to earn. What they pay in cashback is pennies compared to this. '123 world' more than pays for itself. Other banks should take note...

Regarding other peoples comments- the product is mutually beneficial. You use it as your main account/ put your regular mandates through it & you get rewarded, if you dont you pay a fee.

opinions4u

BusinessIsBusiness wrote: »

With all due respect, you dont know what you aretalking about.

You're entitled to your view.

But my comments are fairly accurate.

There is over half a billion sitting in the 123 accounts earning no interest outside of the parameters to earn.

So that's what? About 0.2% of Lloyds' savings balances? Drop in the ocean.

0.4% of Santander's customer deposits. Naff all.

How much is paying 3% interest, way into loss-making territory for a standalone account?

What they pay in cashback is pennies compared to this. '123 world' more than pays for itself. Other banks should take note...

I assure you it doesn't. The economics of the account mean that on a standalone basis it will be costing them a small fortune.

From a customer attraction, retention and cross-selling point of view the product design is quite brilliant. But it is not profit making in its own right. Far from it.

ali-t

I have a santander current account and this month and last I have noticed that I have been charged £20pcm for going into my agreed overdraft. Total nightmare as I used to get charged £5 which consisted of 50p per day capped at 10 days,

wizzards

I have a ZERO account and it doesn't have anything about changes other than that they can move me to another account. ZERO is still paying some interest it seems.

I am wondering if I can keep the ZERO account and open a 123 account along side or will I fall foul of the underfunding rule. As long as the minimum funding comes from outside the account (another bank) then I think I should be OK ?

I can see at sometime in the future Santander will stop all these incentives such as cash back once they have most people swapped. Given that the T & C's are changing every few weeks then before you know it what was a good deal becomes a cost.

innovate

wizzards wrote: »

I can see at sometime in the future Santander will stop all these incentives such as cash back once they have most people swapped. Given that the T & C's are changing every few weeks then before you know it what was a good deal becomes a cost.

My 123 will be closed in a flash if it starts costing me money.


Sorry, don't know the answer to your Q about having a ZERO and a 123 - but would be surprised if you couldn't have multiple current accounts with them.

ses6jwg

ali-t wrote: »

I have a santander current account and this month and last I have noticed that I have been charged £20pcm for going into my agreed overdraft. Total nightmare as I used to get charged £5 which consisted of 50p per day capped at 10 days,

The cap on overdrafts went up ages ago, March 2011 I think.

You should read the literature that is sent to you.

ses6jwg

wizzards wrote: »

I have a ZERO account and it doesn't have anything about changes other than that they can move me to another account. ZERO is still paying some interest it seems.

I am wondering if I can keep the ZERO account and open a 123 account along side or will I fall foul of the underfunding rule. As long as the minimum funding comes from outside the account (another bank) then I think I should be OK ?

I can see at sometime in the future Santander will stop all these incentives such as cash back once they have most people swapped. Given that the T & C's are changing every few weeks then before you know it what was a good deal becomes a cost.

There is nothing stopping you having both a Zero and a 123 current account provided you comply with the T&Cs of both accounts.

ali-t

ses6jwg wrote: »

The cap on overdrafts went up ages ago, March 2011 I think.

You should read the literature that is sent to you.

This is the first time in a year that I have had to use overdraft facility due to pet insurance not paying out so hasn't affected me until now, so slipped my mind.

latecomer

I was sorting out the post that had been opened and ignored and came across this for my wife's account. she only took it for the interest paid on the balance up to £3000. Will now move it to a 123 account which is better for us overall but cant do so until our remortgage completes early next year.

Need to do the same with our RBS royalties gold account - guess December is the month for messing about with current accounts. The sceptic in me wonders whether the banks are doing it at this time of year to try and sneak it past people who are pre-occupied with Christmas!