Switching to Tesco 3% from Santander 123 ?

stylus360

Hi All

I have used Santander 123 as my main account for years 1.5% interest and £5 monthly fee.

I only get about £1.70 credit from DD's BUT i have about £16000 in there so get interest on that.

I also hold x3 TSB accounts with £1500 in each (3%).

I also hold a Flexdirect Account and save £250 a month with their savings account (5%/)

I am thinking of switching from Santander to Tesco to get the 3% upto £3000 and transferring the rest (£13000) to Marcus (1.5%) and compound the interest (inc interest from TSB accounts)

I have several DD's, several SO's on the Santander account and have never switched before.

Is it worth the hassle/stress ??

Santander have been great but i'm stull weary of switching.

Any opinions welcome.

Thanks

BoGoF

I believe Tesco have only guaranteed the 3% till April 2019 so it is likely to drop after that.

eskbanker

As well as Marcus (and perhaps Tesco), you might consider downgrading your 123 to a 123 Lite, which still gives the cashback on the DDs for a lower monthly fee (£1), but no interest - this would also avoid the need to switch if you're concerned about that....

stylus360

eskbanker wrote: »

As well as Marcus (and perhaps Tesco), you might consider downgrading your 123 to a 123 Lite, which still gives the cashback on the DDs for a lower monthly fee (£1), but no interest - this would also avoid the need to switch if you're concerned about that....

So i would keep the £1.70 odd i get in cashbacks, and just use Marcus for savings ?

eskbanker

stylus360 wrote: »

So i would keep the £1.70 odd i get in cashbacks, and just use Marcus for savings ?

You'd still have to deduct the monthly £1 fee to make it a valid like-for-like comparison with other accounts, so it's only really a net 70p, but yes, the 123 Lite pays cashback on the same basis as the full 123 account and wouldn't require an account switch, although you'd obviously need to ensure an adequate balance to fulfil the DDs, which wouldn't be earning interest while in the 123 Lite, thereby shaving a bit more off total return on your money....

ColdIron

stylus360 wrote: »

So i would keep the £1.70 odd i get in cashbacks, and just use Marcus for savings ?

Yes. You would get the same interest at Marcus but only pay £1.00 instead of £5.00 for your £1.70 cashback

Katiehound

and your TSB x 3 accounts are now earning 5% once more (since the debacle!)

No_6

you can do better with 3 accounts with TSB @5% as K.H says
others will probably follow

stylus360

No_6 wrote: »

you can do better with 3 accounts with TSB @5% as K.H says
others will probably follow

Yes, that's why i currently have three of them and have had for years, not touching them.

What was the 'debacle' involved with them ?

Cheers

hollie.weimeraner

stylus360 wrote: »

Yes, that's why i currently have three of them and have had for years, not touching them.

What was the 'debacle' involved with them ?

Cheers

IT upgrade meltdown. Where have you been this year:rotfl::rotfl::rotfl:

stylus360

hollie.weimeraner wrote: »

IT upgrade meltdown. Where have you been this year:rotfl::rotfl::rotfl:

Was there, i know they were taken over by Lloyds but apart from that it has not effected me at all.