Is the Santander 123 Account Worth it?

innovate

RP2X wrote: »

Thanks ......did you mean interest rate after tax ?

No, I meant what I said: the real interest rate (before tax) is probably closer to 2.88% after charges

It's 2.88% if you take off the £24 charges over 12 months.

From the 2.88%, tax will be due, depending on the account holder's tax status.

innovate

EKEA wrote: »

If you had a bunch of them, then you could circulate a fund of £500 between them. I wonder if that would count as a Direct Debit?

No, this would be a Standing Order, not a Direct Debit.

You need to read the T&Cs --- even if it was a DD, it wouldn't count as the monthly funding.

innovate

lurch42 wrote: »

I'm tempted by this, but am wondering about the added risk of theft. Imagine someone got your card details (or your card) - keeping all (or a good chunk) of your savings in the directly-linked account gives thieves access to more of your money more easily. Not something Santander seem to mention...

Cut up your card if you think / know you cannot keep it in a safe place.

lurch42

innovate wrote: »

Cut up your card if you think / know you cannot keep it in a safe place.

Gromitt wrote: »

If someone got into your bank account they could transfer the entire contents of your savings account to your current account and withdraw it anyway, and has been done. Only difference is if they stumble over your VISA debit card number and go on a spending spree, but thats still fraud and will be refunded.

Card details can be stolen without access to the card (on-line sales database hacked, etc)

My point is, even if you eventually get the money back because it was fraud, if you 'put all your eggs in one basket' (and someone stole all of them c/o card number), you may not have any (or 'enough') separate funds you can get at in the meantime (while waiting for refunds). Just something to think about...

squirreltz

I have a mortgage with abbey national, which is now managed by santander obviously, and we recently converted our santander current account to the 123.We also had a current account and loan and previous credit cards with HSBC, on the strength of both sets of parents life-long use of Midland bank - now HSBC.
We haven't had the 123 long enough to say much; but when comparing HSBC to Santander, the latter beats hands down. Certaiinly for young customers like us who were borrowing more than saving.
We have borrowed money from family to clear HSBC loans of our credit score, and suddenly this is first time in 7 years they are being 'nice' to us as they think we have money somewhere yet are obviously running down our current account. We've only left it open so we have a contact point whilst waiting to hear about our FSA ombudsman complaint against them.
They were ok with our two sets of parents, as long as they had savings, but soon as in laws retired with very little left they got much less obliging. They have now left HSBC, as have my parents on strength of what happened with us.
Santander, suprisingly to us, as a simiar large bank taking over little ones - have been brilliant. Even when my husband was made redundant same time as our mortgage priduct renewed, we were just honest.
For customer service, and UK call centres, we aren't going anywhere else.
Just a thought, surely the attached savings account would be accessed through your internet banking, not the card for the current account? Unless I missed the point completely, you would only be at risk if 'they' hacked your computer or stole written down log-in details? Stealing the card would just access the money left in the current account, hence debit card purchases as above.

innovate

squirreltz wrote: »

Just a thought, surely the attached savings account would be accessed through your internet banking, not the card for the current account? Unless I missed the point completely, you would only be at risk if 'they' hacked your computer or stole written down log-in details? Stealing the card would just access the money left in the current account, hence debit card purchases as above.

We're talking about the 123, so that's a current account with debit card. Also, the debit card can be used to withdraw money from the esaver.

Don't want to fuel the doomsday scenario lurch42 is painting - - - I maintain that if you take care with your card and account details, the risk is minute. After all, we could all get run over by a car if we go out, yet tens of millions of customers go out every day.

squirreltz

innovate wrote: »

We're talking about the 123, so that's a current account with debit card. Also, the debit card can be used to withdraw money from the esaver.

Ooooh, didn't know about the esaver card bit. Now I learned something! We have esaver set up too.

Gromitt

lurch42 wrote: »

Card details can be stolen without access to the card (on-line sales database hacked, etc)

Like stated earlier however, the card should be safely locked away and not used for anything, so the fear of fraud is reduced to the fact of someone guessing the correct digits.

Putting your entire savings pot (or even just 20K of it) in a current account that you use regularly (ATM withdrawals, shops, online, etc) is sheer lunacy.

innovate

Gromitt wrote: »

Putting your entire savings pot (or even just 20K of it) in a current account that you use regularly (ATM withdrawals, shops, online, etc) is sheer lunacy.

Why? I would agree would be somewhat unusual, but if someone can manage their affairs that way, why not?

tabby_cats_mum

Sorry to jump into this thread but can you fund the 123 with a bank transfer or does it have to be a salary?