Santander 123

blizeH

Hi,

I've just maxed out my Lloyds Vantage accounts so am looking for somewhere to save my money (instant access needed) and the Santander 123 account looks to be a great option

I would still use Lloyds as my main account, but would switch all relevant direct debits etc to come from my Santander account, and set up a standing order from Lloyds to cover at least the £500p/m requirement - will I run into any problems doing this?

Also, I'm not particularly good with credit cards, it says I need to pay back 22.8% APR, so would that, along with the monthly fee eat up any potential gains I'd get from it? fwiw we'd maybe get a joint credit card (one each) but only spend ~£120 at supermarkets, ~£20 at department stores and ~£70 on petrol/travel.

Many thanks

YorkshireBoy

blizeH wrote: »

will I run into any problems doing this?

No.

Also, I'm not particularly good with debit cards

I think you mean credit cards?

it says I need to pay back 22.8% APR

That's an example based on a certain spend/repayment schedule, and includes the effect of the fee. But isn't the fee waived for the first year anyway if you also take the 123 current account?

so would that, along with the monthly fee eat up any potential gains I'd get from it? fwiw we'd maybe get a joint credit card (one each) but only spend ~£120 at supermarkets, ~£20 at department stores and ~£70 on petrol/travel.

There's a cashback calculator on their website. According to your numbers you'll earn approx £40+ a year. In year one that's clear profit (if the fee is waived as I questioned above). In year 2 it'll cover your fee and still give you around £20 profit.

blizeH

Many thanks YB I did indeed mean debit cards!

Thanks again for the info on the credit card, this will sound awful (especially on a money saving site!) but for me the 'hassle' of having to keep up with the credit card payments, constantly checking the balance, having two extra cards, having a joint account etc etc isn't worth it for £20p/a.

I think I'll exclusively get the current account, switch over my direct debits, and use it as a savings account

Thanks again

Scrounger

blizeH wrote: »

...this will sound awful (especially on a money saving site!) but for me the 'hassle' of having to keep up with the credit card payments, constantly checking the balance, having two extra cards, having a joint account etc etc isn't worth it for £20p/a.

I don't see that a credit card is more "hassle" than a debit card; intrinsically safer to use (ie it's not your money), keeps your spending in one place and doesn't interfere with current account balances.

If remembering to pay on time is a problem then set up a DD, preferably for the full amount.

Scrounger

innovate

You don't have to get the 123 credit card - just having the current account on its own is perfectly ok.

blizeH

Please pardon my extreme naivity here, but to transfer my direct debits from Lloyds to Santander do I just contact each company and ask them to do the change, and then cancel them on the Lloyds site?

johnnybebad2000

We have a Santander agency here so i can tell you about the account/process.

You need £500 pm going in and at least 2 DD's set up. You can take advantage of their switching team but if your wanting to pick and choose DD's and keep the Lloyds a/c open then best to change the DD's you want yourself. 3% is given on balances over £3k up to £20k and also cashback on some DD's including 1% on council tax, 2% on gas/electricity and 3% on mobile phone, phone and tv packages. There is a £2 per month account fee.

You get the Credit Card fee free for the first year so worth taking, you get cashback with that too 1% on supermarket, 2% on department stores and the biggie for most people is 3% on petrol.

That Credit Card isnt designed for balance transfers tho, use it for day to day spending and pay off each month to get the most out of it. They have a credit card for balance transfers if thats what your after.

Hope this helps

blizeH

Many thanks johnny Definitely decided to avoid the credit card, but my current account has just been approved!

I'm actually tempted to do the automatic transfer with Santander since it's only some charity DDs I want to leave behind with Lloyds, but I need to keep at least 2 for the Vantage 4% offer

dazza.mk

YorkshireBoy wrote: »

But isn't the fee waived for the first year anyway if you also take the 123 current account?

Just for anyone else reading, that was an offer running for applications until 31/12/2012 but (currently) isn't listed on the website.

Monocle

I have the 123 credit card. Good payback but terrible customer service. If you need to ring up, make sure you have receipts for any spending in the last few days. If you can't tell them precisely how much something cost, they'll fail you and you won't be able to continue with the call. They'll make you go back to the branch to prove who you are!!!

johnnybebad2000

dazza.mk wrote: »

Just for anyone else reading, that was an offer running for applications until 31/12/2012 but (currently) isn't listed on the website.

The leaflets we have says the offer is valid until 30 June 2013 for the refund of the annual fee. You have to set up a Direct Debit to pay the 123 credit card bill within 30 days of opening it says.