Wake up call to ditch Santander 123 current account

pavane

colsten wrote: »

Best ignored.

hoc wrote: »

I am genuinely disappointed this is your response. I believe my responses have been clear and constructive, but I guess...whatever!

hoc, what you wrote WAS clear. colsten did usual copy paste job sadly common for some high frequency posters here. she's usually good but looks like doesn't want to engage properly. resorting to meme like responses is also quiet sad.

The thread colsten mentions was put together following my suggestion: http://forums.moneysavingexpert.com/showpost.php?p=69667965&postcount=3588

This was why I suggested it: http://forums.moneysavingexpert.com/showpost.php?p=69667215&postcount=3584

And this is was the reply: http://forums.moneysavingexpert.com/showpost.php?p=69667300&postcount=3585

:T

southantrim3

If you are a couple the Halifax is quite a good alternative (in my opinion.)
Myself and OH have a current a/c plus we have a joint current a/c, so 3x£5 = £15 per month (£180 per year.)
Also, we have a clarity credit card each so if you spend £300 per month (and pay it back straight away) they reward you another £5 per month on that.
So, in total, £25 per month.
No worrying about how much you spend to get the cashback to cover your £5 per month fee from Santander...

I do recognise, however, that each person's circumstances are different...

A_Flock_Of_Sheep

I wonder why Santander just don't reduce the interest rate and then abolish the monthly fee.

chris_m

A_Flock_Of_Sheep wrote: »

I wonder why Santander just don't reduce the interest rate and then abolish the monthly fee.

Because they'd probably lose more customers who maintain a high balance specifically for the interest.

YorkshireBoy

A_Flock_Of_Sheep wrote: »

I wonder why Santander just don't reduce the interest rate...

That would require a name change, along with changes to the cashback tiers. What would they call it then?...

Santander 0.5-1-1.5
Santander 0.5-1-2
Santander 0-1-2

To cut costs they only really had 4 options...

1. Discontinue it for both existing and new customers.
2. Close off to new customers only, as they did with their Zero products.
3. Reduce the max balance for 3%, ie to £10K.
4. Increase the fee.

Of the 4, the last is probably the best option all round.

anoncol

Id prefer options 2+3 over 4, but maybe that's because they wouldn't affect me.

mspritch

I just have my salary paid into Halifax then standing-ordered across to Santander. The fiver a month from Halifax pays the Santander fee, although the interest from Santander would cover that anyway.

isingh1

As mentioned in this thread already.

Those thinking to switch or close the account, if you can afford to keep £20k in the account to begin with, £60 really won't hurt the balance.
If its a matter of principle, then what I would do is either open a Halifax account - offer £5 interest per month

or open a TSB Classic account and use the £5 cashback you receive from that. Of course you need to spend £100 on contactless transactions that month in order to get this. But its covered either way.

colsten

isingh1 wrote: »

As mentioned in this thread already.

Those thinking to switch or close the account, if you can afford to keep £20k in the account to begin with, £60 really won't hurt the balance.
If its a matter of principle, then what I would do is either open a Halifax account - offer £5 interest per month

or open a TSB Classic account and use the £5 cashback you receive from that. Of course you need to spend £100 on contactless transactions that month in order to get this. But its covered either way.

Most of those that can afford to keep £20K in a 123 will in all likelihood already have Halifax and TSB and many other accounts that pay better than the 123. They also will not be pleased about the £60 annual charge. Unless you are born with a silver spoon in your mouth, you don't normally get to having lots of cash by not caring about the odd £60 here or there. Quite the contrary.

anoncol

mspritch wrote: »

I just have my salary paid into Halifax then standing-ordered across to Santander. The fiver a month from Halifax pays the Santander fee, although the interest from Santander would cover that anyway.

It's not about just covering the defecit, I prefer to make the most of every pound.