Wake up call to ditch Santander 123 current account

MiserlyMartin

Never mind where they looked - I'd like to also ask where you looked to get better than 2.7% on an instant access savings account?

hoc

colsten wrote: »

You could probably get over 4% for £20K, but very definitely over 3%.

I have more than 20k. There were 2 points in my message:

1) it still beats instant savings accounts on offer once the 4-5% current accounts (and 6% regular savers) run out. 20k is the max that earns interest hence the mention. I didn't claim it was the highest interest on a first slice of 20k because it isn't, so please don't twist my words.

2) It never made sense to have this as the only/primary account when there are numerous others with 4-5%. Bizarrely, many would get this and put a few thousand quid. This wouldn't make sense even if Santander dropped the monthly fee. So, the change in fee, while unwelcome isn't really a game changer. For those who consider it a game changer, it highlights the account was not appropriate for them even before the fee change.

The poster issuing a "wake up call" mentions avoiding the increased Santander fee by switching to the Halifax Reward account, one that gives out a fixed fiver a month. No other interest or any cashback. This is exactly the type of person who should never have had the Santander 123 even when it was only 2 quid a month. So, it is he/she who has been asleep.

Dird wrote: »

For you perhaps but I imagine quite a lot of people used it for the DD cashback & the increase may convince them to switch to NatWest

Yes, those chasing cashback should switch to NW/RBS which came out a few months ago. I always saw the cashback as added bonus, not the main reason. Some of the cashback (and therefore payments/bills) mentioned here are very, very different to mine (a few quid a month).

jack_pott wrote: »

Not with instant access. I've just opened a 123 a/c because it's the best rate I can get.

See my point 1.

colsten

MiserlyMartin wrote: »

Never mind where they looked - I'd like to also ask where you looked to get better than 2.7% on an instant access savings account?

Simple.I looked here: https://forums.moneysavingexpert.com/discussion/5374614

With one or two exceptions, they are all instant access.

colsten

hoc wrote: »

I have more than 20k. There were 2 points in my message:

fair enough. You never did say so in your first response. I also have more than £20K in cash, but the vast majority of people don't have anything like this, and there was no indication that the OP did.

hoc wrote: »

1) it still beats instant savings accounts on offer once the 4-5% current accounts (and 6% regular savers) run out.

I agree with that, but it should always come with that proviso.

hoc wrote: »

I didn't claim it was the highest interest on a first slice of 20k because it isn't, so please don't twist my words.

I didn't say you did claim anything, and I never twisted your words

hoc wrote: »

2) It never made sense to have this as the only/primary account when there are numerous others with 4-5%. Bizarrely, many would get this and put a few thousand quid. This wouldn't make sense even if Santander dropped the monthly fee. So, the change in fee, while unwelcome isn't really a game changer. For those who consider it a game changer, it highlights the account was not appropriate for them even before the fee change.

I agree, it never made much sense as a savings account for most people (look back over my posts, I must have said this dozens of times). But it could still have been an excellent account for cashback for many.

hoc wrote: »

The poster issuing a "wake up call" mentions avoiding the increased Santander fee by switching to the Halifax Reward account, one that gives out a fixed fiver a month. No other interest or any cashback. This is exactly the type of person who should never have had the Santander 123 even when it was only 2 quid a month. So, it is he/she who has been asleep.

They might have netted roughly £5 - £10 net a month in Santander purely from cashback, we don't know. So I wouldn't say they have been asleep without knowing much more about their account and their bills. Switching to Halifax might well, in effect, maintain this sort of monthly income for another 12 months. For a lot of people, switching to anywhere for a bonus payment is better than sticking with the Santander 123 on the mistaken premise that it will pay 3% on up to £20K..............

hoc wrote: »

Yes, those chasing cashback should switch to NW/RBS which came out a few months ago.

I would normally agree but I am not doing so myself because I can't bear the thought of having money sitting in a zero % interest account just so my DDs won't bounce.

hoc

colsten wrote: »

fair enough. You never did say so in your first response. I also have more than £20K in cash, but the vast majority of people don't have anything like this, and there was no indication that the OP did.

I agree with that, but it should always come with that proviso.

I didn't say you did claim anything, and I never twisted your words

I listed the difference in interest returns following the change in fee which was the topic of this thread. You quoted my line and responded as if I was suggesting it is the highest possible return on 20k. That is twisting words.

The fact higher rates are available isn't relevant to this thread, this thread isn't about the highest rates, it is about the change in fee to the Santander 123. What you said isn't incorrect, just irrelevant. When you write as such in response to quoting somebody, you're insinuating they've made this suggestion. This is very irritating.

Imagine I reply to your comment and say "you can get 6% with a regular saver" or "tax free savings with an ISA". These are both correct but not relevant, just like saying I had a turkey sandwich this morning. Who cares?

I have respect for you on this forum, your responses have helped, but I really dislike when people inappropriately use the quote function to build a strawman or trigger debate where none is due. This is annoying and a major turn off in good conversation, also in real life.

colsten wrote: »

I agree, it never made much sense as a savings account for most people (look back over my posts, I must have said this dozens of times). But it could still have been an excellent account for cashback for many.

It made sense if you put in 20k after working your way down filling up accounts giving higher than 3%.

colsten wrote: »

They might have netted roughly £5 - £10 net a month in Santander purely from cashback, we don't know. So I wouldn't say they have been asleep without knowing much more about their account and their bills. Switching to Halifax might well, in effect, maintain this sort of monthly income for another 12 months. For a lot of people, switching to anywhere for a bonus payment is better than sticking with the Santander 123 on the mistaken premise that it will pay 3% on up to £20K..............

The Halifax account is a good one but switching to it from 123 isn't the logical response as explained and highlights 123 wasn't the right choice for the poster to begin with. Switch bonus, etc. are not particular to this scenario, they always exist. The poster's sure/clever/loaded phrasing is inviting scrutiny. Their action suggests they've either corrected a mistake or made a new one, should have switched to other account/s to make their case.

colsten wrote: »

I would normally agree but I am not doing so myself because I can't bear the thought of having money sitting in a zero % interest account just so my DDs won't bounce.

I've found DD habits of MSE very different to mine. I pay monthly amounts which are very close if not identical on same days every month so this can be managed with a standing order. I guess yours vary a lot or you've got all your accounts perfectly balanced at the interest earning max.

.1xp

Already downgraded to the Everyday account and switched my bills to Natwest for the 3% for all household bills @ £3 a month.

Not a great lover of Natwest, however, for the cash back to be made from the bills and nothing else, I can't grumble and I wont be using the account for anything other than the bills direct debits each month.

Archi_Bald

FOREVER21 wrote: »

Do you think Santander might have a re-think and come up with a compromise, if they loose large numbers of customers.

I would think that they have calculated a fair number of leavers in already. But who knows, they might surprise us.

enthusiasticsaver

colsten wrote: »

You could probably get over 4% for £20K, but very definitely over 3%.

You could for £20k but if you are sheltering £60k or more it is very hard to do without using at least one Santander 123 especially if only using one name. My OH is a higher tax rate payer so we keep the minimum savings in his name plus he refuses to get into this opening numerous current accounts and most of the money is saved in my name. Already using Nationwide, Tesco, Lloyds, BOS and TSB. They are still worthwhile I think if you have filled all the regular savers, 4 and 5% ones and Tesco and keep the maximum £20k in them.

Newly_retired

I am not happy about the fee increase, but Santander has been my primary current account for years ( formerly A & L ). We have other higher paying accounts but I use Santander for my regular outgoings and for recycling money to meet T & Cs of various accounts.
Our household bills come out of the Santander joint account and the cashback covers the new £5.
My sole account does not earn enough to cover £5 but there is no point moving DDs from joint to sole, as it is my money anyway. I top up from elsewhere whenever the balances drop below £20K.
I can't actually see the point of moving, as I cant find anywhere better. I have already got Lloyds, TSB, Halifax, FD, Nationwide etc. but not Natwest and various regular savers.
So I shall just suck it, and get slightly less interest, effectively. My current account is too complicated to replicate.
Or have I missed something?

where_are_we

My intention was to remind everyone who has calculated that a 123 account with a £5 monthly fee could be bettered by using other high interest accounts, to get their skates on to achieve a switching bonus before the fee goes up. Why not get a switching bonus if you are going to close the 123 account anyway.
I`m afraid that "Hoc" has condemned me incorrectly - "The Halifax account is a good one but switching to it from 123 isn't the logical response as explained and highlights 123 wasn't the right choice for the poster to begin with" - without knowing my situation. Our primary current account is a joint 123. My redundancy lump sum necessitated opening a second 123 account after opening TSB, Nationwide and Lloyds accounts. Over the last month I have been moving the £20K in the second 123 account into the other 3% accounts mentioned in this forum. As a non tax payer the Halifax will pay me £175 over the next year for next to nothing in the account - so I most definitely have not been "asleep" !