Santander 123 account fee increasing to £5 from January

.1xp

Free banking will end in the future.

People think it's great to complain and claim compensation for everything today, in the end, all companies will amend their business models to make up for the huge losses.

I'm not saying i agree with all the miss selling etc, however, a business is a business .... the complaints culture that has and is still developing today will only continue to push prices of everyday things up to enable companies to recoup their losses.

Kim_13

colsten wrote: »

Someone else wondered that too: https://forums.moneysavingexpert.com/discussion/5324654

Didn't think it would be in that case; as one of the posters said, they aren't business accounts. I think it could (but will not necessarily) work differently when the new savings rules come in though.

colsten

Yorkshire_Pud wrote: »

As usual the simpler the government, any government, try's to make things the more complicated it all becomes. Not that they can tell us how its all going to work yet because they don't know yet either.

I assume you mean tries? Anyway, none of us needs to know before the end of the 2016-17 tax year how we need to declare any interest above £1K if we are a BR tax payer, £500 if we are paying HR tax, and £0 for additional rate tax payers. Before then, we just need to know that we have to pay tax on it - and we have known that for some time now.

If the way to declare income from savings after 2016-17 were the same as it has been for several years, some people would have to fill in a tax return / self assessment. This is a 10-minute job for somebody who just has earnings from employment/pensions and savings interest.

But there is a possibility that the new personal tax account (as announced by George Osborne) will be available by then for everybody, in which case it should be even easier and faster.

Paul_1977

ManAtHome wrote: »

Reckon I was closer...
http://forums.moneysavingexpert.com/showpost.php?p=58362655&postcount=2299
http://forums.moneysavingexpert.com/showpost.php?p=58607611&postcount=2319

Yes.:beer:

MDMD

daveyjp wrote: »

1% cashback on Santander mortgage payments may still make it valuable to some customers.

My feeling is that by hiking the fee up a bit, those customers who make them money on the account (ones who have a mortgage) will easily recover the fee and will stay.

Those (like me) who now can't cover the fee on cash back will go elsewhere.

FenFatale

I've just read in the newspaper that Santander have 3.8 million account holders, and made £928 million profit in the last 6 months. That works out at £244 profit per customer. Why, therefore, do they need to increase their charge by £3 per month (or £18 over the 6 months) and risk alienating so many of those existing customers?

darkidoe

FenFatale wrote: »

I've just read in the newspaper that Santander have 3.8 million account holders, and made £928 million profit in the last 6 months. That works out at £244 profit per customer. Why, therefore, do they need to increase their charge by £3 per month (or £18 over the 6 months) and risk alienating so many of those existing customers?

Coz they know they are offering one of the best deals out there to savers and even with the increase in charges, people will stick with them as long as its still the top deal out there.

seand89

What does this mean for credit card customers who have already paid their year upfront, please? I got charged the £24 at the beginning of the card - will I get an additional charge or will I get the new charge from when my first year is up, please?

darkidoe

seand89 wrote: »

What does this mean for credit card customers who have already paid their year upfront, please? I got charged the £24 at the beginning of the card - will I get an additional charge or will I get the new charge from when my first year is up, please?

Do you not have a 123 current account for the credit card fees to be waived for the first year? Check the T&C but i reckon they can't charge you additional within the 1st year that you have already paid for and the increased charges should apply from year 2 onwards.

greensalad

I got the Santander account in April and was really enjoying reaping the benefits. We use this account as our utilities/rent account and don't use it at all for general spending. We pay in a set amount at the beginning of the month and leave the account to look after itself.

We were earning £7 a month or so but with the new fee it's really not worth it. I'm considering moving to Halifax who are now offering £5 p/m you stay in credit (we always are) and £125 switching bonus. Or I'm sure there will be other deals similar in January...

My question is, is there any repercussions of pulling out of this account regarding our cashback? I.e is there any rule regarding keeping the account for a certain amount of time? If we switch and haven't had the account for a year, is there a penalty to our current earnings?