Santander 123 to TSB Classic Plus

stuarta99

Hi all,

I currently have a Santander 123 current and credit card. I don't use the current account for savings as I don't like to keep that amount in there and noticed last night that I only make about £4 from the DD cashback. Obviously with the new £5 fee, I'm not going to be making any money out of this and been looking at swapping to another account. I also have a savings account which I'm regularly saving into but it's pathetic interest.

At the moment the TSB Plus seems appealing as it has the 5% on the main account, 5% on the first £100 contactless and 5% regular savers account which I'll use.

I'm thinking however that if I get rid of the Santander 123 current account, I'll lose the cashback options on the 123 credit card but then again with the charge going up on that, might be worth me changing that as well.

Can I please grab some thoughts on these accounts please.

Many thanks

DragonQ

Just calculate whether it's worth keeping the 123 account and card. If so, fine. If not, switch. There are plenty of credit cards out there that offer rewards and, as you pointed out, TSB (and others) give much more interest. If you're not going to have more than £2k savings (remember the regular saver eats up £250/mo) or £6k between two of you, TSB is likely the best option.

20aday

Hi,

Depending on when you opened your 123 credit card (pre September 14th, 2015 ideally) it *might* be worth keeping the account running as you'd be only capped at £3 per month on the transport section (rather than £3 per category as it is now).

How much cashback do you generate on the 123 card? Will it be more than £3/month?

The TSB Plus "contactless" offer could be worth it (if you spend £100/month on those transactions) as the promotion runs until the end of this year; your final 'reward' would be paid in January 2017.

stuarta99

Wow thanks for the quick reply. I was trying to work out what the interest might be like on the current account. It would start the month at the max but then obviously filter out near the end of the month. The regular saver I would be looking at putting about £200/month in but I'm sure that is still more than the 0.6% I'm getting from Santander.

Trouble is I'm loyal and don't like moving but think I'll be crazy to stay

stuarta99

20aday wrote: »

Hi,

Depending on when you opened your 123 credit card (pre September 14th, 2015 ideally) it *might* be worth keeping the account running as you'd be only capped at £3 per month on the transport section (rather than £3 per category as it is now).

How much cashback do you generate on the 123 card? Will it be more than £3/month?

I have had the accounts for several years now and looking at statements, averaging about £5/month. I use it for all joint food shopping and fuel and my personal stuff. We do have a Halifax Clarity as well which we get £5/month on as well so was thinking of using that for the joint stuff and then getting something myself as a personal one.

20aday

It doesn't pay to be loyal these days!

I'm not entirely clued up on the Clarity card but I believe (in addition to the £5 reward) it offers preferential rates on foreign transaction fees or something like that?

I erroneously posted a £3 cap on transport but it's actually capped at £9/month pre. 16th September 2015.

If you're looking to be rewarded for your own personal purchases I'd take a look here:

http://www.moneysavingexpert.com/credit-cards/?tab=sect4

I will forewarn you now that due to recent EU regulations that were implemented last month means (American Express aside, for now) any decent 'cashback/reward' deals could easily be pulled/reduced.

That's one of the reasons Santander have increased the Annual Fee to £36 from the account opening anniversary date.

Archi_Bald

New switch offer for TSB newbies: http://www.tsb.co.uk/current-accounts/current-account-switcher-terms-conditions-jan-2016.pdf

stuarta99

20aday wrote: »

It doesn't pay to be loyal these days!

I'm not entirely clued up on the Clarity card but I believe (in addition to the £5 reward) it offers preferential rates on foreign transaction fees or something like that?

I erroneously posted a £3 cap on transport but it's actually capped at £9/month pre. 16th September 2015.

If you're looking to be rewarded for your own personal purchases I'd take a look here:

http://www.moneysavingexpert.com/credit-cards/?tab=sect4

I will forewarn you now that due to recent EU regulations that were implemented last month means (American Express aside, for now) any decent 'cashback/reward' deals could easily be pulled/reduced.

That's one of the reasons Santander have increased the Annual Fee to £36 from the account opening anniversary date.

The Halifax card does yes, we got it for our honeymoon and saved us a bundle.

Still just need to work out if I am better switching then on the current and credit cards

where_are_we

Switching to TSB is looks like your best option with an bonus of £100 thrown in.I don`t think you get a prorata refund of your £24 annual fee on your 123 credit card if you stop it so use it until your annual fee runs out if you can after closing your 123 current account.You get a better return using the TSB contactless card (5%) than your 123 credit card(1%-3%) on purchases and I have managed very well without my 123 credit card at supermarkets and petrol stations although you have to limit your spend to a maximum of £30 each time and a maximum in total of £100 per month.You mention "we" so persuade your OH to get a TSB account as well to get £100 x2 cashback spend per month if your total spending necessitates that.(We have 4 TSB cards)

Archi_Bald

where_are_we wrote: »

You get a better return using the TSB contactless card (5%) than your 123 credit card(1%-3%) on purchases

This is only true on the first £100 of your spend each month. Some people with the 123 CC get £9 cashback on petrol and/or travel alone.

I would not link a current account decision to a CC decision and vice versa.

20aday

Archi_Bald wrote: »

This is only true on the first £100 of your spend each month. Some people with the 123 CC get £9 cashback on petrol and/or travel alone.

I would not link a current account decision to a CC decision and vice versa.

I'm one of those people you mention above; assuming the account was opened before the 16th September last year it should continue to be capped at £9 on fuel/transport (I personally see Santander changing this eventually).

If OP wanted to switch both of his accounts from Santander then TSB also offer 5% cash back on their credit cards too with contactless payments.

Having said that... Do TSB use "Right to Offset"?