Santander 123 current account fees rising to £5 in January

G_M

People keep referring to the new tax break that's coming, as offsetting the fee increase. But surely what matters is how this account (with/without new fees/tax) compares against the alternatives?

Since the alternatives will also all be benefitting from the new tax regime, when assessing whether the new fee is worth paying you should disregard the tax change.

Terry98

G_M wrote: »

People keep referring to the new tax break that's coming, as offsetting the fee increase. But surely what matters is how this account (with/without new fees/tax) compares against the alternatives?

Since the alternatives will also all be benefitting from the new tax regime, when assessing whether the new fee is worth paying you should disregard the tax change.

Don't forget though that the Santander 123 account also pays cashback which isn't taxable and is not offered by most other current account providers.

bigfreddiel

Also cas back on the 123 credit card will be vastly reduced, luckily for NEW CUSTOMERS ONLY.

For once existing customers benefit!

Cheers fj

bigfreddiel

bigfreddiel wrote: »

Tesco's £3k at 3% gets you £90/yr which would cover the increased fees for your 123 account

Cheers fj

Actually, it would pay for two 123 accounts extra fees
3x12x2=72 is the extra fees

And £90 after 20% tax is £72!

Easy innit!

fj

YorkshireBoy

bigfreddiel wrote: »

Actually, it would pay for two 123 accounts extra fees
3x12x2=72 is the extra fees

And £90 after 20% tax is £72!

"Actually", there would be a 96p shortfall.

£3,000 x 2.96% x 0.8 = £71.04

bigfreddiel

YorkshireBoy wrote: »

"Actually", there would be a 96p shortfall.

£3,000 x 2.96% x 0.8 = £71.04

Oth Interest will be tax free £5000 worth this year, and £1000 next year and so on

So it's easily covered

£3000 x 3 £88.80

So that's £7.4 per month, that leaves £1.40 after paying the £3 extra for two 123 accounts. Enough left over for a coffee!

Touch!!

Cheers fj

molerat

We will be keeping ours I think, 3x 123, 6x BOS, 2x TSB + monthly savers, 2 x Tesco so finding somewhere else for the 123 money will be difficult.

colsten

molerat wrote: »

We will be keeping ours I think, 3x 123, 6x BOS, 2x TSB + monthly savers, 2 x Tesco so finding somewhere else for the 123 money will be difficult.

No Club Lloyds / Club Lloyds Monthly savers? Why just 2 x TSB, and why just 2 x Tesco? Done all the FlexDirects?

It obviously wouldn't take £60K but about half of it could find a better home.

Steve_xx

bigfreddiel wrote: »

Also cas back on the 123 credit card will be vastly reduced, luckily for NEW CUSTOMERS ONLY.

For once existing customers benefit!

Cheers fj

Existing customers aren't benefitting due to the fact that they will get nowt more than they currently do. And, the nowt more will cost them £1 a month more. Doesn't look like a "benefit" to me!

Steve_xx

Terry98 wrote: »

Don't forget though that the Santander 123 account also pays cashback which isn't taxable and is not offered by most other current account providers.

Don't forget too that TSB are giving 5% cashback on contactless payments with their Classic Plus Account.