Santander 123 current account fees rising to £5 in January

[Deleted User]

Thanks Steve xx. It makes sense to keep the 123 CC until April 2016. I'm paid up fee-wise until then (albeit on the 1 year "free" deal), so might as well accumulate as much free cash back as possible until then. After that, cash back will barely cover the £3 per month charge, so will probably not be worth the hassle to keep it.

Steve_xx

Deleted_User wrote: »

Thanks Steve xx. It makes sense to keep the 123 CC until April 2016. I'm paid up fee-wise until then (albeit on the 1 year "free" deal), so might as well accumulate as much free cash back as possible until then. After that, cash back will barely cover the £3 per month charge, so will probably not be worth the hassle to keep it.

Yes you're right. However, do keep an eye out for Topcashback as when I got the 123 credit card they were giving £12.62 cashback. So I figured that at £2 per month I'd be getting 18 months worth for free. Of course with the new charges in January that reduces to 16 months!

I note that there are no Santander offers on Topcashback at the minute. But you never know it may return and if so there might be nothing to prevent you opening another if the Topcashback amount was enough to tempt you.

[Deleted User]

Thanks Steve. Another consideration is that, by keeping the 123 CC going, I benefit from unlimited cash back on 1% and 2%, and £9 per month on 3% (new holders after 16/9/15 are limited to £3 per month on each category). Realistically, though, I'm never likely to bust the £3 limit, at least not regularly. I'll monitor usage between now and next April. No need to make a final decision til then.

Steve_xx

Deleted_User wrote: »

Thanks Steve. Another consideration is that, by keeping the 123 CC going, I benefit from unlimited cash back on 1% and 2%, and £9 per month on 3% (new holders after 16/9/15 are limited to £3 per month on each category). Realistically, though, I'm never likely to bust the £3 limit, at least not regularly. I'll monitor usage between now and next April. No need to make a final decision til then.

Yes the reduced cashback would make it a definite no for me under the new terms. Meanwhile it's possible that some other credit card outfit with a decent cashback and zero fee might emerge.

However, I'm finding that the 123 current account offers are netting me quite a bit of cashback. So that helps with the monthly fee on that. Four of us ate out at Harvester last week; each had a main and a cuppa. There was a Santander offer of 20% off at Harvester and I had a £5 voucher I'd printed off from t'internet. The result was it cost just £6 apiece.

Also, I'm liking the new TSB 5% cashback on contactless payments. However, I've yet to find one of the supermarket petrol stations were payments for fuel can be made contactless.

moneyfoolish

Steve_xx wrote: »

Yes agree, it implies here that after the first (fee free year if you already have another 123 product) year

The free first year only applies if you pay by direct debit each month even if you have another 123 product.

[Deleted User]

Thanks, money foolish. You have to have a monthly direct debit set up from your 123 current account to pay your 123 credit card in order to benefit from the "first year free deal" on the credit card. Mine is for the full balance on the statement, but it could be just for the minimum payment and still qualify for the free year deal. The free year deal offer ends on 10 January 2016 anyway, for new credit card customers.

Stompa

Just got my letters about the fee increase. Goodness knows why they had to send a separate letter for each account!

eskbanker

Stompa wrote: »

Just got my letters about the fee increase. Goodness knows why they had to send a separate letter for each account!

I got five letters for three accounts, not sure how they worked that out!

P.S. Yes, I know you can't open three these days!

stphnstevey

Are the terms for numbers of Santander 123 accounts changing (ie still 1x sole and 1x joint)?

I am thinking of ditching mine (no cashback or savings) and didn't want to lose out if ever needed to go back

Steve_xx

stphnstevey wrote: »

Are the terms for numbers of Santander 123 accounts changing (ie still 1x sole and 1x joint)?

I am thinking of ditching mine (no cashback or savings) and didn't want to lose out if ever needed to go back

That's a question that only Santander can give a definitive answer to.