Did the Santander 123 account used to be free? Without £2 monthly fee

Poq

Did the 123 Santander account used to be fee-free?

Now there's a £2 monthly charge that takes away (ever so slightly) from the 3% interest on the balance and cashback

Any idea, why is it there?

gt94sss2

Poq wrote: »

Did the 123 Santander account used to be fee-free?

No - its always had the £2 charge since it was introduced.

Any idea, why is it there?

So they are guaranteed to make some money. While also hoping that enough people will join but not take full advantage of the cashback/or higher interest.

Regards
Sunil

innovate

Most people will be able to make a lot more than £2 in cashback and/or interest. You need to compare the bottom line profit you can make in a 123 with other current accounts. If you don't have qualifying DDs and/or balances that would not attract interest, there are others that might suit you better

As gt94sss2 already commented, the £2 charge has been there since the account was first launched. In fact, all the current T&Cs of the account have been there since launch date.

Vortigern

Santander offered the 123 Credit Card fee-free for one year to holders of the 123 current account. They did it by a one off credit of £24 to the CC account. Is that what the OP is thinking of?

carlo_koko

Santander 123 CC charges 2.50% on non £ Transaction ?

Vortigern

carlo_koko wrote: »

Santander 123 CC charges 2.50% on non £ Transaction ?

2.95% according to a leaflet dated 1/2/12

carlo_koko

Vortigern wrote: »

2.95% according to a leaflet dated 1/2/12

Yes I just had look at their charges.
harges:

Balance Transfers

Up to 5% (minimum £5)†

Cash Transactions

3% (minimum £3)

Foreign Exchange Fee

2.95% of the amount of any transaction in a foreign currency

Copy Statement

£5 for each copy of a statement

Default Charges:

Over limit fee

£12

Late payment fee

£12

Payment returned fee

£12

Trace fee

£25 (if you do not inform us of a change of address and we have to trace you)

You can avoid paying additional charges by staying within your credit limit and ensuring that payments are received on time.:mad:

Vortigern

carlo_koko wrote: »

Yes I just had look at their charges.

You're supposed to do that before you ask on here!

carlo_koko

Extra offers available to 123 customers
Earn more cashback - Open a 123 Credit Card too and not only will you earn cashback on your everyday spend, we'll refund the first year's annual fee on your 123 Credit Card1. Offer valid until 30.06.2013. 22.8% APRrepresentative (variable). Click here for full details. For your convenience you can apply for the 123 Credit Card within your 123 Current Account application.
Question : 123 Account that comes with 1year free Annual fee,worth it?
My concern is about non £ transaction ie 2.95%

Vortigern

carlo_koko wrote: »

Question : 123 credit card Account that comes with 1year free Annual fee,worth it?
My concern is about non £ transaction ie 2.95%

Worth it if you spend a lot on petrol - for the 3% cashback. Otherwise I prefer a card that gives cashback on everything, rather than being limited to specified classes of retailer.

There are other cards which are far better for non-sterling transactions - for example Halifax Clarity.

innovate

carlo_koko wrote: »

Question : 123 Account that comes with 1year free Annual fee,worth it?

Not sure I understand your question. Do you mean you get the 123 CC free for a year when you have a 123 current account? If so, whether it's worth it for you, only you can decide. It's worth it for me because I get more in cashback than it costs me.

carlo_koko wrote: »

My concern is about non £ transaction ie 2.95%

Just use a different card for your foreign spend. See http://www.moneysavingexpert.com/travel/cheap-travel-money