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Should I ditch Santander 123 due to the fee increase?

This is the discussion to link on the back of Martin's blog. Please read the blog first, as this discussion follows it.

Please click 'post reply' to discuss below.


  • CornucopiaCornucopia Forumite
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    I'm getting 404 from that link.
    ex Board Guide

  • BayBay Forumite
    229 Posts
    Worked fine for me - perhaps try again later or try a different browser.
  • jamesdjamesd Forumite
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    There's more extensive discussion in the topic Santander 123 current account fees rising to £5 in January.

    It's also worth considering the potentially cheap overdraft facility. Mine's at about 4% if I was to use it all continuously but the bigger win for me is the £1 daily rate that makes it cheaper than fixed fee plus interest rate I get elsewhere. This makes it relatively cheap for me to do short term investing funded by the overdraft facility. I recently made about £70 from short term P2P trading for a cost of £7 in overdraft charge and expect to be able to repeat this at least a few times a year. Definitely not for everyone, but handy for some.
  • MSE_MartinMSE_Martin MoneySaving Expert
    8.3K Posts
    For overdraft Nationwide's overdraft 0% for a year then 50p a day smashes it, hence why I don't consider it an overdraft option
    Martin Lewis, Money Saving Expert.
    Please note, answers don't constitute financial advice, it is based on generalised journalistic research. Always ensure any decision is made with regards to your own individual circumstance.
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  • Yes it is probably better not to ditch 123 but such massive fee increases should be challenged. Is it not possible with joint action to make Santander sit up,take notice and reconsider ? As a wrinkly I don't have the expertise to organize a mass protest but surely somebody out there does. Perhaps one of Martin's colleagues could?
  • jamesdjamesd Forumite
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    MSE_Martin wrote: »
    For overdraft Nationwide's overdraft 0% for a year then 50p a day smashes it, hence why I don't consider it an overdraft option
    Thanks. Yes, it's not remotely close to the best overdraft deal.

    Just a feature that I'll use profitably in addition to the already profitable for me cashback.

    They have another advantage of a sort: they turn out to be no hassle for the sort of investment transactions I do that would cause FD to close my offset current account and change my offset interest only mortgage to non-offset if I was to do them there.

    For the moment, for me, spending credit searches on credit card BTs is a better use than a fifth current account. Might change sometime. If I could borrow £500k+ I would... so many great opportunities out there with decent risk levels, at least for me.
  • tgroom57tgroom57 Forumite
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    I'm looking for somewhere to hold savings (5-10k) so I've read this carefully. I'll probably make half the £60 charge in cashback, and Santander 123 still looks to have the edge.

    Your comparison table had me puzzled at first- I don't pay tax, and the numbers seemed lower than my calculations.
  • edited 23 September 2015 at 11:55AM
    the2emsthe2ems Forumite
    9 Posts
    edited 23 September 2015 at 11:55AM
    Does anyone know if there is an exit fee for leaving Santander?
  • matty_artmatty_art Forumite
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    Why doesn't this article take into account the other various current accounts that earn 3% or more e.g. TSB, BOS, Tesco? If you earn little to no cashback, all of these options are better than Santander and with a little swapping money around, you can save at least £11k in them. Use a couple of regular savers as well and Santander starts to look like only an option if you have well over £25k to save (as you'd need £10k in Santander to make it better than other accounts).
  • I'd hate to have the bills of the people making £500+ a year from this account.

    Using my average bills for calculations I'd make £66.50 and pay out £60.00 so I didn't bother changing my existing Santander current account as I pay my bills from Halifax and get £60 a year ... a profit of £53.50 against Santander's £6.50.

    I had considered keeping my Halifax account and transferring council tax, gas/electricity and phone/broadband to Santander to get the best of both worlds but for £6.50 a year it's not worth the hassle.

    Very disappointing move from Santander.
    Debt Free since Feb 2007 :T
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