Santander 123 account fee increasing to £5 from January

GetRealBabe

Hi

Thanks OP for the heads up. Will use the £5 from my Reward account to pay for this.

SAHD_Jim

I've just reviewed my account - I receive, on average about £5.50CB with the full £20K saved receiving gross interest.

So it is a shame that the CB will be pretty much wiped out, but unless someone can correct me, there isn't another account that I can get 50p CB on my household bills while receiving 3% interest (sorry 2.96% ) on my £20K.

I have already maxed out 2 Club Lloyds accounts and am maxing out the monthly payment to a Club Lloyds saver and life is too short, frankly, to chase all the short term one year deals like I have done in the past...
I know, I know, wash my mouth out... :eek:

Although I am looking at a TSB Classic Plus...

colsten

BOS + Tesco will give you 3% AER on £21K, albeit on variable interest rates.

You can significantly boost that rate with 4%, 5% and 6% Regular Savers, running alongside your current accounts. Mind you, you can also do that if you hold a 123.

Consumerist

SAHD_Jim wrote: »

. . . Although I am looking at a TSB Classic Plus...

They have recently started paying 5% cash-back on up to £100 monthly spending, till Dec 2016, on contactless cards in addition to the 5% pa interest on up to £2,000 balances.

Spidernick

SAHD_Jim wrote: »

I've just reviewed my account - I receive, on average about £5.50CB with the full £20K saved receiving gross interest.

So it is a shame that the CB will be pretty much wiped out, but unless someone can correct me, there isn't another account that I can get 50p CB on my household bills while receiving 3% interest (sorry 2.96% ) on my £20K.

Exactly - I cannot understand the people earlier on in the thread saying that the 123 account is no longer worthwhile. In your case, even if you got no interest on the account (i.e. you had a £10 balance at the start of the month, put in the £500 needed and used this to pay your cashback bills and then transferred anything left to another account to leave £10 for next month) you would still get £6 a year that you wouldn't get anywhere else.

As such, I am a little bemused by some of the comments on this thread, but perhaps I also need to be corrected!

Consumerist

Spidernick wrote: »

Exactly - I cannot understand the people earlier on in the thread saying that the 123 account is no longer worthwhile. In your case, even if you got no interest on the account (i.e. you had a £10 balance at the start of the month, put in the £500 needed and used this to pay your cashback bills and then transferred anything left to another account to leave £10 for next month) you would still get £6 a year that you wouldn't get anywhere else.
As such, I am a little bemused by some of the comments on this thread, but perhaps I also need to be corrected!

But that £6pa cash-back will cost you £60pa in account fees from January.

Have I misunderstood your meaning?

Spidernick

Consumerist wrote: »

But that £6pa cash-back will cost you £60pa in account fees from January.

Have I misunderstood your meaning?

Yes - SAHD Jim gets £5.50 cash back a month and so 50p net from January.

Consumerist

Spidernick wrote: »

Yes - SAHD Jim gets £5.50 cash back a month and so 50p net from January.

Ok. See his point now.

Archi_Bald

Spidernick wrote: »

Exactly - I cannot understand the people earlier on in the thread saying that the 123 account is no longer worthwhile.

It may no longer be viable for them, even if it still is for you.

Herbalus

Archi_Bald wrote: »

It may no longer be viable for them, even if it still is for you.

Exactly.

And to give some figures, if every month you have £110 council tax, £70 water, £70 electricity, £20 mobile, and £30 broadband, your cashback for the year would be £54, which is less than £60.

In my own circumstances, every single one of my bills is lower than the amount above, so my cashback would be about £38 and I'd be £22 short of the annualised fee.

But if you have sky sports and an iPhone 6s+ then you'll probably cover the £5 monthly fee just on that bill alone!