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Santander 123 still best savings account ?

edited 30 November -1 at 1:00AM in Budgeting & Bank Accounts
126 replies 15.4K views
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  • No_6No_6 Forumite
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    When you DO all the accounts to save a few pounds !
    here and there, then you are doing your best.

    So I have all THE accounts paying the best rates,

    which happens to include multiple 1.5% @ Santander.
    but it's only 1.26%


    so you tell me where to go for better rates
  • Zero_SumZero_Sum Forumite
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    No_6 wrote: »
    When you DO all the accounts to save a few pounds !
    here and there, then you are doing your best.

    So I have all THE accounts paying the best rates,

    which happens to include multiple 1.5% @ Santander.
    but it's only 1.26%


    so you tell me where to go for better rates


    Multiple santander accounts means you're only getting 1.2% on additional ones.
    There's loads of instant savings accounts paying 1.35% +

    Do you need it all instant access? Have a rolling stock of fixed rate bonds maturing every few months.

    Full fat Santander 123 isnt one of the top paying accounts when you factor in fees. Drop to lite to get DD cash back & move cash to marcus like what many others are doing is a much better option ( theres no £20k limit either)
  • edited 12 October 2018 at 8:48AM
    hubbhubb Forumite
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    edited 12 October 2018 at 8:48AM
    Zero_Sum wrote: »
    Multiple santander accounts means you're only getting 1.2% on additional ones.
    There's loads of instant savings accounts paying 1.35% +

    Do you need it all instant access? Have a rolling stock of fixed rate bonds maturing every few months.

    Full fat Santander 123 isnt one of the top paying accounts when you factor in fees. Drop to lite to get DD cash back & move cash to marcus like what many others are doing is a much better option ( theres no £20k limit either)

    Yes But what if you cant afford to fund a lite a count with £500 a month to get ( in my case) £3 cashback (minus £1 fee) a month AND fund a Marcus acount. Or can I send the £500 to Marcus after it has landed in lite and still earn my cashback ?

    I also have a Halifax reward account of which my money goes through before it reaches the santander 123 earning me £3 which puts me back at £5 free a month when you add the £3 cashback from the 123.
  • RG2015RG2015 Forumite
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    hubb wrote: »
    Or can I send the £500 to Marcus after it has landed in lite and still earn my cashback ?
    You can send the £500 anywhere you like after it has hit the lite. It will still satisfy the monthly funding requirement.
  • SevenOfNineSevenOfNine Forumite
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    I've crunched a few numbers trying to answer this question for myself. We currently have a full-fat Santander 123 account, and more than cover the £5 fee with our cashback. We also regularly have a balance north of £15,000 a lot of the time, which many other accounts can't cope with. So for a decent interest rate and a general lack of faffing on, I still think my money is in the right place.

    Same here, £20k in the 123 a/c, pretty much cover the £5 fee with cashback. Bounce £1000 in via SO & leave behind just enough to cover the DD's, bouncing remainder straight back out again (via SO), covers monthly pay-in requirement in 2 banks.

    With numerous other banks & savings a/c's I can't be asked to muck about even further, it's adequate.
    hubb wrote: »
    What is that supposed to mean ?

    It means Karlie88 thinks some people have money to burn - she'd be right, some have. In addition there's also more to life than spending time shunting money all over the place every 5 minutes...…...got to get a life balance, it's not all about pounds, shillings & pence for some of us!
    Seen it all, done it all, can't remember most of it.
  • EachPennyEachPenny Forumite
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    It means Karlie88 thinks some people have money to burn - she'd be right, some have. In addition there's also more to life than spending time shunting money all over the place every 5 minutes...…...got to get a life balance, it's not all about pounds, shillings & pence for some of us!
    But opening a Marcus account and transferring the bulk of £20k from a 123 account over to it and leaving it sitting there until needed is not "shunting money all over the place every 5 minutes".

    All the 'shunting' you are talking about is needed to earn cashback and interest in order to cover the £5 fee on the 123 account.

    Ditching the 123 account entirely and moving the savings to Marcus (or some other instant access accounts) would earn you more interest and require less 'shunting'. That would be a better solution for someone who really values the pounds, shillings and pence and their time. (That's the point Karlie88 was making)
    "In the future, everyone will be rich for 15 minutes"
  • CornucopiaCornucopia Forumite
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    Santander 123 has been good for a while, but there are now better offers available, depending on the exact circumstances (the point that has been well made further up the thread).

    For example, my local Kent Reliance (bank?) offers 1.65% on a 2 year Bond for new customers, and I am receiving a loyalty rate of 2.1% on this product. Other local and minor institutions are now offering competitive rates (finally).
    Ex Board Guide
  • polymaffpolymaff Forumite
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    Hey, take it easy !

    The lumpen, non-MSE, masses probably think that we MSEers are ALL lunatics - just some more lunatic than others. :)
  • RG2015RG2015 Forumite
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    I can see both sides to the Santander 123 current account versus the Marcus savings account.

    I have downgraded to 123 Lite and transferred c £20k across. It was only then I realised what a pain it would be to keep the balance very low but always have enough to fund the DDs and SOs.

    It was strangely comforting to always have c £20k available in a central hub earning 1.26% even at a cost of about £30 pa before Marcus came out.
  • enthusiasticsaverenthusiasticsaver Forumite, Board Guide
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    RG2015 wrote: »
    I can see both sides to the Santander 123 current account versus the Marcus savings account.

    I have downgraded to 123 Lite and transferred c £20k across. It was only then I realised what a pain it would be to keep the balance very low but always have enough to fund the DDs and SOs.

    It was strangely comforting to always have c £20k available in a central hub earning 1.26% even at a cost of about £30 pa before Marcus came out.

    That is one of the reasons I won't move my £20k from Santander 123. Always having enough in there to cover all eventualities gives great peace of mind. Also Marcus includes a 0.15% bonus which will disappear after 12 months. Also I wish people would not keep saying 1.26%. Santander pays 1.5%. It comes with a fee of £5 per month but the cashback for many of us more than covers that. Moving to Santander lite and going back to juggling money around is not something I want to do.

    1.5% of £20k is £300 interest each year in Santander 123
    Cashback for us averages £8.50 each month so £102 each year.

    Monthly fee is £5 each month so £60 over the year

    Total return is 1.71% on the £20k with no money juggling or need to open another account and move it in 12 months time.
    Early retired in December 2017

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