Is the Santander 123 Account Worth it?

oxters

Thanks Macman
I won't bother with a transfer I will just open a new ISA for the 3% after 6 April - but if I bide my time might there be better ISA's still to be announced?

anotheruser

macman wrote: »

Why give your LA a year's interest free loan though?-this is MSE after all.

Because then I won't get behind and would rather not have yet another monthly bill to think about. I am not bad with money, never been over drawn but I'd rather pay it off now than spread it over a year as it's just hassle. Plus, the interest I would get by paying monthly would be nominal.

Is the cashback just on direct debits?
So if I paid a one of payment of council tax from the 123 account, this wouldn't get any cashback? Then again, I guess I could organise an annually direct debit I suppose. I'd have to be careful to make sure there isn't a limit on cashback per month.

dr_adidas01

anotheruser wrote: »

Because then I won't get behind and would rather not have yet another monthly bill to think about. I am not bad with money, never been over drawn but I'd rather pay it off now than spread it over a year as it's just hassle. Plus, the interest I would get by paying monthly would be nominal.

Is the cashback just on direct debits?
So if I paid a one of payment of council tax from the 123 account, this wouldn't get any cashback? Then again, I guess I could organise an annually direct debit I suppose. I'd have to be careful to make sure there isn't a limit on cashback per month.

If you read the T&C's of the account it quite clearly says "For cashback household bills must be paid by Direct Debit to organisations within eligible categories."

http://www.santander.co.uk/csgs/Satellite?appID=abbey.internet.Abbeycom&c=Page&canal=CABBEYCOM&cid=1237892266671&empr=Abbeycom&leng=en_GB&pagename=Abbeycom%2FPage%2FWC_ACOM_ViewSelector

macman

anotheruser wrote: »

Because then I won't get behind and would rather not have yet another monthly bill to think about. I am not bad with money, never been over drawn but I'd rather pay it off now than spread it over a year as it's just hassle. Plus, the interest I would get by paying monthly would be nominal.

Is the cashback just on direct debits?
So if I paid a one of payment of council tax from the 123 account, this wouldn't get any cashback? Then again, I guess I could organise an annually direct debit I suppose. I'd have to be careful to make sure there isn't a limit on cashback per month.

But if you pay it all off on receipt of the bill then you are already 'getting behind', as you are reducing your cashflow quite unecessarily. How can paying it by DD over 10 instalments be a hassle? If you've never been overdrawn, then the money will be there to cover the DD's.
Would you consider paying your utility suppliers a year ahead?
Obviously if you get a discount for upfront payment then you may consider that a good return.
Yes, if you make an annual DD payment for your CT then you will still get the 1% cashback.

anotheruser

^ Yes, I'd pay for utilities up front if I had unlimited use of their product.

I just prefer to structure my finances so I pay off bills as soon as I can, if possible in advance. If something happens in the near future which drains my savings, then I know I won't have the council tax to worry about.

It's just a personal choice to have less coming out each month because I've already paid it off. Mortgages are obviously different.

ZZaffy

I've been hanging on the phone for Santander for the past 28 minutes and rising so I thought it might be quicker to get an answer via MSE. I was just about to set up a direct debit for my council tax but the information on the automated line says there will be a charge of 1.6% if paid by credit card. 123 pay 1% for opening a direct debit. Am I missing something or will I be down by .6%? If I pay the direct debit off my Santander debit card, will I receive the 1% from Santander without receiving the 1.6 penalty from the council? Still hanging on - now 35 minutes and rising.

marathonic

Direct Debit and Credit Card are two completely separate payment methods. If you set up a direct debit, the money comes directly out of your account and the credit card charges are irrelevant.

You don't even use your debit card for a direct debit.

BusinessIsBusiness

ZZaffy wrote: »

I've been hanging on the phone for Santander for the past 28 minutes and rising so I thought it might be quicker to get an answer via MSE. I was just about to set up a direct debit for my council tax but the information on the automated line says there will be a charge of 1.6% if paid by credit card. 123 pay 1% for opening a direct debit. Am I missing something or will I be down by .6%? If I pay the direct debit off my Santander debit card, will I receive the 1% from Santander without receiving the 1.6 penalty from the council? Still hanging on - now 35 minutes and rising.

I think they are confused because you are confused. Credit cards and debit cards are two entirely different things.

You don't get council tax cash back on the 123 credit card (if you have this). You do on their 123 current account which has a debit card. There is no charge for setting up a dd on the current account.

BusinessIsBusiness

Hominu wrote: »

I wonder if the company you worked for had their salary/wages account with Santander. Would you then gets your interest and cashback, or would that be considered an internal transfer and thus not eligible.

Staff have a different 123 current account & cc without a fee. A little perk of the job working for a bank. Guessing they don't have a funding requirement either. The money is paid from outside of an account in our name so counts. Although I wish the Santander account was in my name...


Also an additional caviat to the conditions is funding for the 123 account can come from a Santander business account for obvious reasons.

BusinessIsBusiness

Santanderarehorrendous wrote: »

I have just closed all accounts with Santander. MSE is right about Customer Service - they are awful. Twice their trigger happy security have intervened on legitimate payments. Last time I could not remember month and year of account opening, so failed their Security phone test. I received a text to validate the transaction and did so. However, my account remained blocked (although payment made). Security sent me to the branch. Arrived 09:50. Opening time 10:00am. Actually opened 10:04. Took 45 minutes to unblock account, then close them all in disgust. The branch staff said "don't blame us, the account you have a problem with is online" (After they opened the branch late?!). Their face to face, online and security channels are disjointed, and you will pay by wasting your time being bounced around. Do not bank with them.

So you failed security and you are blaming the bank... Funnily enough the question they asked you is asked because most people don't know their balance when put on the spot... The bank cannot win either way. Good job they flagged it up if it was an irregular transaction.

Moreover staff of any organization are less inclined to help and are more likely to fob you off to get rid if you acting angrily. Being calm polite and assertive if necessary gets you a whole lot further as staff who are human after all react better to this and you get a lot more done. People also get better service too. Think about it- if you have someone who is angry and rushing you you try and get the job sorted and them away asap. More likely mistakes occur and things are missed...