Santander 123 rate to be cut to 1.5%

Alter_ego

Can someone please confirm that a 123 current account with no direct debits, but permanently maxed at 20k will earn 1.2% after £5 monthly fee deducted?

YorkshireBoy

Alter_ego wrote: »

Can someone please confirm that a 123 current account with no direct debits, but permanently maxed at 20k will earn 1.2% after £5 monthly fee deducted?

You need to use the gross p.a rate, not the AER, as with a maxed out balance you won't get the benefit of compounding.


£20,000 x 1.49% = £298

Subtract the £60 fees = £238

£238 / £20,000 x 100 = 1.19%

Alter_ego

Thanks York boy. Looks like it's Yorkshire bank 5yr fixed for me unless anyone can suggest better. I don't want any more current accounts though.

YorkshireBoy

adindas wrote: »

Just to add:

Do you ever make a post and leave it without editing (sometimes over an hour later!)?

What about a couple who have four of them after the change. Do they need to downgrade four accounts to Santander 123 lite or just one and close the others to maintain access RSA and cashback ??

One account between them if one of the 123's was joint. One account each if they were all sole. Unless of course your want to argue that's not correct?

So now with only one person instead of two means less customers ...

I give up!...but not just yet.

Does it mean that Santander will have less customers than they had before they launched the loss-leader 123 account back in 2012?...which, to remind you, was Nick_C's original assertion.

I know English isn't your first language, but here we have a saying...when you are in a hole, stop digging.

adindas

YorkshireBoy wrote: »

One account between them if one of the 123's was joint. One account each if they were all sole. Unless of course your want to argue that's not correct?I give up!...but not just yet.

A few people have confirmed here to have four Santander 123 A/C as a couple.
Probably because previously they allow two a/c per person .

hoc

I didn't read the Nick_C v adindas in its entirety but a quick comment on the back and forth- without a Santander mortgage, I don't believe most breakeven with the new 5/month fee.

The breakeven, taking 2% average cashback would require 250/month expenses. Unless you have some ripoff mobile and/or TV packages, the average wouldn't even be 2% with council tax being the single biggest item for most getting only 1%.

Similarly, unless a Santander mortgage is involved, the Natwest cashback is far better.

Ballard

I got around £4.25 cashback on a total spend of around £260 last month which is about average for me. I do have an expensive mobile bill (£45) which covers two phones but other than that my expenses are probably lower than most.

Adding up council tax and gas/electricity bills for most people will recoup at least £3.00, I would suggest.

djpailo

YorkshireBoy wrote: »

This is getting silly now!

By disagreeing, what you're saying is that ALL those customers who opened 123 accounts over the last 4 years will leave Santander in November. Here's a list of some of those who won't...

1. Those who have all the other high interest paying current accounts full, and for whom 1.5% AER is still the best instant access account available.

2. Those who have downgraded to 123 Lite, due to the lower fee and ongoing cashback.

3. Those who have downgraded to Everyday, thereby maintaining access to the regular saver.

And of course not forgetting all those new customers who are drawn to the 123 Lite.

This is what I will probably do though as I said elsewhere, just a horrible waiting game now for what the other banks are going to do.

Ashen

I wonder how busy their phonelines will be on 1 November.

harz99

Alter_ego wrote: »

Thanks York boy. Looks like it's Yorkshire bank 5yr fixed for me unless anyone can suggest better. I don't want any more current accounts though.

Okay if your adding the interest into the fixed term account each year, but if you want your interest paid out monthly or annually it appears it can only be to a YBS current account - so you may need another current account if you've not already got one.


No good for me.