Santander Current Account new T&C's

BusinessIsBusiness

opinions4u wrote: »

You're entitled to your view.

But my comments are fairly accurate.

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?

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.

Equally, you are entitled to your view. So- assure me it doesnt pay for itself.. I am assuming you work for the bank and know the figures...

If you look at my comment history, its clear to see where I work. And looking at the internal, very detailed, breakdown of the 123 account and 123 world as a whole, it really does pay for itself.

So everyone worrying they will just pull the plug on the benefits, unless it does start making a loss then I doubt they will change it anytime soon. If anything they have been adding to the benefits- such as cash back on SanUK mortgage payments and rail purchases. Its a coup as its a well designed account that encourages people to use it.

shinydiscoballs

ali-t wrote: »

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.

Same thing happened to me, I closed my account pretty sharpish after that, shame I used to like being an alliance and leceister customer.

I moved to first direct where you get a free £250 overdraft, perfect for me incase I go over my balance at the end of the month by mistake.

opinions4u

BusinessIsBusiness wrote: »

Equally, you are entitled to your view. So- assure me it doesnt pay for itself.. I am assuming you work for the bank and know the figures...

If you look at my comment history, its clear to see where I work. And looking at the internal, very detailed, breakdown of the 123 account and 123 world as a whole, it really does pay for itself.

So everyone worrying they will just pull the plug on the benefits, unless it does start making a loss then I doubt they will change it anytime soon. If anything they have been adding to the benefits- such as cash back on SanUK mortgage payments and rail purchases. Its a coup as its a well designed account that encourages people to use it.

Well I'll have to take your word for it.

But I find it astonishing!

wizzards

What worries me also about this 123 account is that Santander from my experience try and push it to people for whom it won't be suitable. I have a disabled relative on direct payments and benefit and the bank tried to sign him up for this account from his basic account. Clearly its not suitable for him given his income.

Obviously this 123 account when used sensibly can save money and even make some money but for every customer that makes a few bob there will be loads of people that either don't understand the T & C's or fall foul of one of the conditions and get penalised.

I have to ask myself why would a bank offer such a deal and the conclusion is they somehow are or will make money out of it from most of its customers. The ZERO account didn't last long and I don't think the 123 will last much longer till we get the 456 account or some other new fad. There's nothing like churning customers from product to product to make a bit of cash. But then if you make the effort to churn as well you can for sure make some cash :T:j

latecomer

innovate wrote: »

Why do you need to wait with opening a 123 account until you remortgage? Don't understand.

.

My understanding is that its generally advisable not to apply for any financial product which would show up on your credit report while applying for a mortgage as if noticed by the lender it could slow things down

I also have a number of current accounts so am not concerned about that aspect.

ali-t

After reading this thread I have looked into the 123 account and using their calculator I would get about £150pa cash back but the bit I can't find clarification on is whether there has to be £1K in the account at all times as well as having the £500 go through it each month?

The T&Cs state that interest rates vary depending on how much money is in the account but I am not clear if that money just has to have passed through the account at some point that month (i.e. pay day) or has to remain in the account

Interest rates you earn when you have at least £1,000 in your account
1 23 Current Account

1.00% AER/gross (variable) on your entire balance
once your balance is £1,000 or over
2.00% AER/1.98% gross (variable) on your entire
balance once your balance is £2,000 or over
3.00% AER/2.96% gross (variable) on your entire
balance once your balance

If I transferred I would be using it as my main account and would have around £2K going in each month but it disappears pretty quickly. does that mean I would get no cash back or 2% cashback?

Confused!!

ses6jwg

ali-t wrote: »

After reading this thread I have looked into the 123 account and using their calculator I would get about £150pa cash back but the bit I can't find clarification on is whether there has to be £1K in the account at all times as well as having the £500 go through it each month?

The T&Cs state that interest rates vary depending on how much money is in the account but I am not clear if that money just has to have passed through the account at some point that month (i.e. pay day) or has to remain in the account

Interest rates you earn when you have at least £1,000 in your account
1 23 Current Account

1.00% AER/gross (variable) on your entire balance
once your balance is £1,000 or over
2.00% AER/1.98% gross (variable) on your entire
balance once your balance is £2,000 or over
3.00% AER/2.96% gross (variable) on your entire
balance once your balance

If I transferred I would be using it as my main account and would have around £2K going in each month but it disappears pretty quickly. does that mean I would get no cash back or 2% cashback?

Confused!!

The interest is calculated daily.

You would 2% for every day your balance is over £2k, 1% over 1k and no interest whilst the balance is below £1k.

There is no requirement to keep £1k in there.

innovate

ali-t wrote: »

....and would have around £2K going in each month but it disappears pretty quickly. does that mean I would get no cash back or 2% cashback?

Confused!!

Cashback is completely independent of your account balance. You get cashback for qualifying DDs as long as you pay your monthly fee (£2) and pay in at least £500 a month.

Balance is only relevant to the interest you can get. Interest is calculated daily on the then existing balance.

Check clause A4 on page 7 of this: http://www.santander.co.uk/csgs/StaticBS?blobcol=urldata&blobheader=application%2Fpdf&blobkey=id&blobtable=MungoBlobs&blobwhere=1223428158785&cachecontrol=immediate&ssbinary=true&maxage=3600