Santander 123 current account fees rising to £5 in January

Steve_xx

Oasis1 wrote: »

Thanks for the tip. I think I've worked out if I stick with Santander 123 current account, I will get £179.40 in interest over the next 12 months, taking into account the increase in monthly charge in January.

However, if I put £2500 in the Nationwide FlexDirect Current account (includes £100 switch bonus), and £5000 in the Club Lloyds Current account, I will get £425 in interest over the next 12 months. I'll have to set up some interesting direct debits to keep all of the accounts active, but yes, well over double the interest!

Thanks :j

The "interesting" direct debits problem is easily sorted by opening two Tesco savings accounts. These are somewhat unique in that you can setup Direct Debits to pull money from your Santander (or any other account that requires a DD mandate on it) to the Tesco accounts, thereby satisfying the need for two DD mandates!

badger09

Oasis1 wrote: »

Thanks for the tip. I think I've worked out if I stick with Santander 123 current account, I will get £179.40 in interest over the next 12 months, taking into account the increase in monthly charge in January.

However, if I put £2500 in the Nationwide FlexDirect Current account (includes £100 switch bonus), and £5000 in the Club Lloyds Current account, I will get £425 in interest over the next 12 months. I'll have to set up some interesting direct debits to keep all of the accounts active, but yes, well over double the interest!

Thanks :j

I would probably also go for a TSB Classic Plus now, we don't know how long these accounts will be available to new customers and the Nationwide 5% only last for a year.

£2k in TSB (and consider the Monthly saver)
£2k ish in Nationwide
£4k in Club Lloyds

givememoney

DH and I have a joint 123 account although it is really his account but as we are in our twilight years my name is on there to.


Can I put up to £20,000 in there as well? I seemed to read maybe I could?

Steve_xx

givememoney wrote: »

DH and I have a joint 123 account although it is really his account but as we are in our twilight years my name is on there to.


Can I put up to £20,000 in there as well? I seemed to read maybe I could?

No. Each account can contain 20k maximum, or more if you wish, but no interest will be earned on the excess of 20k. But you could open one in your sole name and he could open one in his sole name and this would provide a home for a further 40k.

MrRee_2

We've got three 1-2-3 Accounts with £60k in total ... we shan't be moving anytime soon.

Also have Lloyds, TSB and all the other Current Accounts which are attractive and all max'd out.

What we need is some more 1-2-3 style accounts as I'm forced to have money in hopeless accounts paying around 1.3%' ish

Archi_Bald

MrRee wrote: »

What we need is some more 1-2-3 style accounts as I'm forced to have money in hopeless accounts paying around 1.3%' ish

Who forces you to do that? Even if it makes sense for you to have tens of thousands of cash in instant access cash accounts, you can easily get 1.65%. Which is still hopeless, but a lot better than 1.3%.

[Deleted User]

New poster here. I activated my 123 credit card in April 2015. Immediately my account was debited with the £24 annual fee, which was recredited within a few days (under the first year free offer). I am considering cancelling the card in April 2016. I read somewhere on this thread (or another thread) that you need to give 1 month's notice. I've looked at the T and C's and it seems to say that the card can be cancelled by the holder by giving notice in writing, or by phone. Nothing about a month's notice being required. Can anyone confirm?
Incidentally, from Jan 2016, the fee will be deducted monthly (at £3 per month) and not annually in advance, as now. So missing the notice period (if any) won't cost you the full year's fee.

colsten

I called them to cancel my 123 CC. During the call, I paid off the outstanding balance with a debit card, and the CC got closed there and then.

[Deleted User]

Thanks colsten. That confirms what I understand to be the position from a quick look at the T and C's

Steve_xx

Deleted_User wrote: »

Thanks colsten. That confirms what I understand to be the position from a quick look at the T and C's

Yes agree, it implies here that after the first (fee free year if you already have another 123 product) year, that you will be charged in monthly £3 increments rather than as at present an upfront charge of £24, soon to be £36. Therefore you may benefit by holding on until the charge kicks in. Condition 22 deals with ending the agreement which is confirmed by Colsten's experience:

An annual fee of £24 applies: it's important you're aware that if you apply on or after the 11 January 2016, you will be charged a monthly fee of £3. If you apply before that date, you will be charged a £24 annual fee, then 12 months later this will change to a £3 monthly fee (equivalent to £36 a year).

22 Ending the agreement
22.1 You may end this agreement at any time by writing to our
Customer Service Department at the address in Condition 20.5
or calling us on 0800 9 123 123* and paying the full amount
you owe us. Unless there are exceptional circumstances we will
give you two months’ written notice if we decide to end this
agreement. You must continue to pay interest on all amounts
you owe us even after the Account is terminated or closed.