Top Bank Accounts Discussion Area

Steve_xx

RMD_marcus wrote: »

This account still seems very attractive cashbacks can eliminate 5£ monthlyfee and 1.5% interest on up to £20000 why has this a/c disappeared from view?
RMD marcus

It's because it's not quite so attractive as when Santander paid 3% on this account.

Kim_13

RMD_marcus wrote: »

This account still seems very attractive cashbacks can eliminate 5£ monthlyfee and 1.5% interest on up to £20000 why has this a/c disappeared from view?
RMD marcus

The launch of the Santander 123 Lite account has also had an impact, as it means that the same cashback can be earned for £4 less per month. This account is listed in the accounts best for cashback section of the best bank accounts guide.

Essentially this means customers are paying £4 per month to be able to earn 1.5% interest - something that can be beaten by other current accounts or Regular Savers.

The best instant access savings is 1.35%, which would yield around £30 less interest a year on the full £20,000. The 'extra' in account fees is £48.

That said many Instant Access rates have a time limited bonus, so it does mean moving the money now and again.

ValiantSon

Kim_13 wrote: »

The launch of the Santander 123 Lite account has also had an impact, as it means that the same cashback can be earned for £4 less per month. This account is listed in the accounts best for cashback section of the best bank accounts guide.

Essentially this means customers are paying £4 per month to be able to earn 1.5% interest - something that can be beaten by other current accounts or Regular Savers.

The best instant access savings is 1.35%, which would yield around £30 less interest a year on the full £20,000. The 'extra' in account fees is £48.

That said many Instant Access rates have a time limited bonus, so it does mean moving the money now and again.

None of which explains why the 123 account has been removed from the guide (this is not a criticism of your post). None of the other accounts recommended are right for everyone, so it is an arbitrary decision to remove 123.

The 123 account still offers a good interest rate on a large balance (better than any easy access savings account, and better than any other current account, when you take into account the size of balance). For many people the cashback covers the account fee (or nearly does).

Three Bank of Scotland Vantage accounts would equal the interest, but you would need 6 different direct debits to operate them, which for many would not be possible if they also wanted the cashback from the 123 Lite.

MSE's decision to remove it from the guide is just silly, especially when the guide includes accounts that deliver a lot less, e.g. Tesco, which offers a maximum of 3% AER on £6000 (for those unable to take advantage of joint accounts), which equals £177.60, i.e. only 59.6% of the possible return from Santander (and the Tesco accounts would require 6 direct debits to achieve this).

It is true that the 123 account was better when the monthly fee was only £2 and it paid 3% interest, but that doesn't mean it is necessarily a poor choice now.

castle96

I use my TWO (I know, I know) x 123 to fund all my regular savers. Still a useful place, even if a lower rate now

schiff

I've been with Santander since the Alliance & Leicester days. The cut in the interest rate was a blow as I had the full balance in both. From then on I was into the treadmill of getting the best rates with other accounts and regular savers. The second account was jettisoned and the balance in the main one is now a fraction of what it was.

But it's an account I have been using for pretty much everything, moving money around everywhere, and I couldn't face changing banks for all the outfits I deal with. Every monthly statement has over 100 entries. The cash-back from my DDs covers the charge.

I have a sort of affinity with the account and even for a big incentive I wouldn't switch.

castle96

Schiff, so you had two as well ? Branch told me that just wasn't possible....but hey ho. I use 1 a/c for most things now. An old friend.

schiff

I think the second account was offered if you were deemed to be a Select customer? I forget the detail now.

colsten

castle96 wrote: »

Schiff, so you had two as well ? Branch told me that just wasn't possible....but hey ho. I use 1 a/c for most things now. An old friend.

At some stage they had no restrictions to the number of current accounts you could take out with them. I know people with 4 x 123 - nicely below the FSCS limit of £85K if fully loaded. 4 of them is clearly only a sensible option for those who want to keep lots in cash for one reason or another, and who have exhausted all the other accounts that pay better interest.

It's not been possible for some time to get 4, but to the best of my knowledge, they never asked existing customers to reduce the number of 123s.

caseybond

Hello! I wondered if it was possible for me to switch my student account (which I do not use) for a regular current account so that I am able to successfully achieve a switch reward? I was hoping to try for Natwest £125. I can ensure that I meet pay-in/DD criteria, it is just whether the status of my existing account as 'student' would cause issues. Thank you for your help.

ValiantSon

caseybond wrote: »

Hello! I wondered if it was possible for me to switch my student account (which I do not use) for a regular current account so that I am able to successfully achieve a switch reward? I was hoping to try for Natwest £125. I can ensure that I meet pay-in/DD criteria, it is just whether the status of my existing account as 'student' would cause issues. Thank you for your help.

I don't know for certain, but I can't see a reason why it wouldn't be possible.

Unfortunately, however, the NatWest switching offer has now ended, but you could still take advantage of the Halifax offer, which also pays £125 (and is much more straight forward). If successful the £125 would be paid within seven days.