Santander 123 account fee increasing to £5 from January

ManAtHome

Paul_1977 wrote: »

I never claimed I did, I said I knew "it" was coming, something like "this", as my previous post showed.

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

robin58

Kind-off knew this would come sooner rather than later.

Too good an interest plus cashback that pays the charge plus a little profit. Now that's all gone.

The cost of running a bank in the UK.? Why not use some of the money you clawed back when you dropped the share payout by 2/3rdsevery quarter this year.

By the way since they did claw back of the dividend, the share price dropped by nearly half. It seems some people don't see a future in Santander.

enthusiasticsaver

That is a shame. We have 2 Santander 123 current accounts, I with the maximum £20k in it but our normal current account sometimes just has £15k in it for some of the month. I have not yet worked out our alternatives but I think it will still be worth keeping them for the 3% interest. We also have a 123 credit card but only just make enough cashback normally to cover the fee so that will go when the cashback fee increases.


I wonder how many customers they will lose through this.

Thrugelmir

Cactus_Jack wrote: »

Very disappointing, I wonder if consumer pressure could make them change their mind..

No it's a change of commercial direction that's been flagged for some years. Cross subsidy of services (i.e selling PPI) is going. Banks will either want customers that generate income or pay fees. Providing 24/7 online banking services isn't cheap. The UK is simply falling into line with international banking services.

20aday

I'm glad I took out the Santander 123 before the 16th of September. Even once the 23 month interest free period is over I'm definitely keeping the card to make use of the (currently for existing customers) uncapped cashback.

It is disappointing for those of us able to maximise the rewards (and interest) but with the EU ruling on Interchange Fees etc. it wasn't long before cuts were made somewhere.

I'm calling Sainsbury's Bank to be the next in line to reduce Nectar points earned out of store.

Thrugelmir

20aday wrote: »

I'm calling Sainsbury's Bank to be the next in line to reduce Nectar points earned out of store.

Tesco's has. :mad:

Yorkshire_Pud

enthusiasticsaver wrote: »

That is a shame. We have 2 Santander 123 current accounts, I with the maximum £20k in it but our normal current account sometimes just has £15k in it for some of the month. I have not yet worked out our alternatives but I think it will still be worth keeping them for the 3% interest. We also have a 123 credit card but only just make enough cashback normally to cover the fee so that will go when the cashback fee increases.


I wonder how many customers they will lose through this.

Its not beyond the bounds of possibility that the 3% rate will get cut around the time the interest begins to be paid gross from April 2016.

Notice the TopCashBack Santander offers are no longer being offered. Wonder if they will be back?

darkidoe

Yorkshire_Pud wrote: »

Its not beyond the bounds of possibility that the 3% rate will get cut around the time the interest begins to be paid gross from April 2016.

Notice the TopCashBack Santander offers are no longer being offered. Wonder if they will be back?

I believe there might be a mass exodus if that happens. They will want to drop the bomb gently.

Consumerist

darkidoe wrote: »

I believe there might be a mass exodus if that happens. They will want to drop the bomb gently.

If the CMA investigation leads to the end of "free banking" I think the whole banking/savings scenario is going to be turned on its head. If other banks are forced to openly declare their charges, instead of hiding them, Santander's new monthly charge may become the norm in banking but, with any luck, we'll still get the credit interest from Santander.

Interesting times ahead, methinks.

tripleblack

Might be a daft question so excuse me if so. With the 123 account can you pay in the £500 per month to meet the conditions to qualify for the 3%, but take it back out (or near enough) in the same month?