Santander 1-2-3 as a Savings Account - Is it Safe?

saver861

zolablue25 wrote: »

I pay all my bills that are eligible for cashback from my Santander account and they are still a couple of quid short of covering the monthly charge.

Obviously it depends on the amounts of the bills involved that you are paying but mine just covers the monthly charge for one account. A rough calculation gives me about £67 per year cashback, just slightly over the monthly fee.

TomJ

saver861 wrote: »

Obviously it depends on the amounts of the bills involved that you are paying but mine just covers the monthly charge for one account. A rough calculation gives me about £67 per year cashback, just slightly over the monthly fee.

Of course, you can get more cashback (3% on everything) for a lower fee (£3pcm) at NatWest. Unless and until you've maxed out all the other options (TSB Plus, Nationwide FlexDirect, Club Lloyds, 3xBoS Vantage, 2xTesco Bank Current) it's not worth it save to avoid hassle. Given you can get £32,500 spread across those (£30,000 if you've used the Nationwide year at 5%), you need a pretty big lump sum before you need a 1-2-3.

EDIT: I have just realised the figures should have been £30,500 across the accounts or £28,500 in a FlexDirect dead year, as I included 2 TSB Plus accounts, which is no longer an option for new openers. mea culpa.

whattochoose

The Santander 1-2-3 account fits my needs perfectly. I have a NS&I Index Linked Bond that matures any time now. Will receive about £17200 which I will re-invest in the Santander account. Along with this I have a Halifax Reward account which will be closed and turned into the Santander account by way of the 7 day switch. I have 3 DD's in the Halifax account which will help me meet the needs of the 1-2-3 account.
I really can't be bothered with all these accounts that offer higher interest but on smaller amounts, some only for a year. I suppose I'm just lazy.
If I add an extra £3000 to the Santander account, along with cashback on DD's, I'll be getting approx. £45 a month, as opposed to £5 a month on my reward account with Halifax, so no contest really.
And, while I don't take the issue of bank account hacking lightly, I'm no more worried than I would be with any other bank account I possess. I do everything I can to ensure I'm not victim to any scams. I can do no more.

saver861

TomJ wrote: »

Of course, you can get more cashback (3% on everything) for a lower fee (£3pcm) at NatWest. Unless and until you've maxed out all the other options (TSB Plus, Nationwide FlexDirect, Club Lloyds, 3xBoS Vantage, 2xTesco Bank Current) it's not worth it save to avoid hassle. Given you can get £32,500 spread across those (£30,000 if you've used the Nationwide year at 5%), you need a pretty big lump sum before you need a 1-2-3.

I think it is down to the extra interest generated by the multiple accounts versus few accounts and less interest. I have the 1-2-3 and Lloyds and TSB. Did have the Nationwide but the 5% is just for one year.

whattochoose wrote: »

Along with this I have a Halifax Reward account which will be closed and turned into the Santander account by way of the 7 day switch.

Why close the Halifax Reward - that pays £5 per month for very little effort? We have three, mine, Mrs S and joint. £180 per year for naught.

colsten

whattochoose wrote: »

I really can't be bothered with all these accounts that offer higher interest but on smaller amounts, some only for a year. I suppose I'm just lazy.

As you say, you might just be lazy, or content with receiving less interest than you could get, with next to no effort.

If you aren't after top interest rates, what is it you are looking for on MSE?

whattochoose

saver861 wrote: »

I think it is down to the extra interest generated by the multiple accounts versus few accounts and less interest. I have the 1-2-3 and Lloyds and TSB. Did have the Nationwide but the 5% is just for one year.



Why close the Halifax Reward - that pays £5 per month for very little effort? We have three, mine, Mrs S and joint. £180 per year for naught.

Because I need the DD's to meet the requirements of the Santander account.

whattochoose

colsten wrote: »

As you say, you might just be lazy, or content with receiving less interest than you could get, with next to no effort.

If you aren't after top interest rates, what is it you are looking for on MSE?

All sorts of information from knowledgeable people which assists me in making the decisions I eventually arrive at.

djpailo

With Santander, every time you set up a payment to a new payee, you need to confirm it with a code sent to your phone. So even if, but some small chance, Santander has its database hacked or your PC is hacked, the money would remain in your account. The hacker would need access to your phone to transfer the money to his or her account.

saver861

whattochoose wrote: »

Because I need the DD's to meet the requirements of the Santander account.

But you can transfer the DD's to the Santander Account without closing the Halifax Reward if you don't use the Switching service. I'm right in thinking there is no incentive for opening the Santander, i.e. £100 switching bonus etc so you can open the Santander account without using switch but still keep your Halifax Reward.

colsten

whattochoose wrote: »

The Santander 1-2-3 account fits my needs perfectly. I have a NS&I Index Linked Bond that matures any time now. Will receive about £17200 which I will re-invest in the Santander account. Along with this I have a Halifax Reward account which will be closed and turned into the Santander account by way of the 7 day switch.

sounds like you will be throwing £60 away for no reason at all.
Not a problem, just an observation. Your £60 (or not your £60)

whattochoose wrote: »

I have 3 DD's in the Halifax account which will help me meet the needs of the 1-2-3 account.
I really can't be bothered with all these accounts that offer higher interest but on smaller amounts, some only for a year. I suppose I'm just lazy.

You are right, you are probably just lazy. Utterly lazy, too, as it takes very little effort to make more money than you can make from a Santander 123.

whattochoose wrote: »

If I add an extra £3000 to the Santander account, along with cashback on DD's, I'll be getting approx. £45 a month, as opposed to £5 a month on my reward account with Halifax, so no contest really.

It wouldn't be smart to have more than £20,000 in a 123. It would also not be smart to think it's either a 123 or a Halifax Reward. The smart ones on here have both.

Many also get a lot more interest for £20,000 than a 123 account can yield, by exploiting the 4,5 and 6% accounts available.