The Top Easy Access Savings Discussion Area

System

I've done an online application and if successful I will setup all qualifying direct debits on the 123 account and transfer enough each month to cover them. I will transfer £1000 from my Lloyds TSB Vantage accounts and sit back and wait for the £344 estimated cash-back and interest earned each year :-)

koru

scgf wrote: »

I will transfer £1000 from my Lloyds TSB Vantage accounts and sit back and wait for the £344 estimated cash-back and interest earned each year :-)

You mean £10,000?

DragonQ

The 123 Account has too many restrictions for me to bother. I don't pay Council Tax and I don't pay for gas or water by direct debit, which means I'd only earn £5 per year cashback minus fees. Even if I started paying gas by direct debit, that'd only increase to £8 per year.

I already get 3% interest with Vantage, so that basically means I'd be getting £5-8 per year in exchange for moving my main bank account and direct debits (hassle), plus getting worse customer service (statistically). No thanks!

System

koru wrote: »

You mean £10,000?

Lol, yes £10000!

Repairman77

I looked into the Santander 123 account, already having a few accounts with them but came to the conclusion that it was a lot of messing about for such a meagre reward.

I can remember them doing a similar thing many years ago where you got a lot of freebies and interest on your current account for a payment of £10 a month; you actually gained a little until they reduced the interest rate to nearly nothing and you ended up paying them to operate your current account. Luckily they agreed to return the account to a normal one with no charges.

Also I could see no 'guaranteed fixed' benefits in the 123 account. What's to stop them changing the benefits or upping the charge for running the account at any time.

Hope I'm not sounding too cynical but do you trust any of the banks?

rb10

Repairman77 wrote: »

Also I could see no 'guaranteed fixed' benefits in the 123 account. What's to stop them changing the benefits or upping the charge for running the account at any time.

They would have to give you at least 30 days notice to change eithr the £2 monthly fee or the reward structure, giving you plenty of time to downgrade to a standard Santander account or switch to another bank.

Highly unlikely that they'd make any adverse changes in the near future, since it seems to be successful and popular, and they continue to advertise it heavily.

If it pays you to do so, then it's easy to switch.

koru

Also, the top tier interest rate is 3% above £3000 because the whole concept of the account is 123:£1000 and 1%, £2000 and 2%, £3000 and 3%. So, if they drop the top interest rate, they would probably have to change the name or scrap the account. They could maybe make the tiers wider, so that you only earn 3% above, say, £5000, but even this would be moving away from the 123 concept. I would think there is a pretty good chance they will stick with this for quite a while.

koru

Repairman77 wrote: »

I looked into the Santander 123 account, already having a few accounts with them but came to the conclusion that it was a lot of messing about for such a meagre reward.

I think it depends whether you have a big mortgage with Santander and/or a lot of money you can put on deposit. With a big mortgage, you get £120 cashback per year. If you have £20,000 that you would otherwise have on instant access deposit elsewhere (not with Coventry Family), then you could benefit by £60 per year. (£540 interest on £20k in 123, minus 2.4%x£20k = £480. 2.4% is the current highest instant access rate.)

For anyone else, the benefits are indeed meagre.

If you are eligible for the Coventry Family Savings account, you would be better off using this, because they pay 3% on your entire balance whereas Santander only pays 3% on the amount of your balance in excess of £3000. (£600 interest on £20k, so £60 more than 123.)

System

koru wrote: »

If you are eligible for the Coventry Family Savings account, you would be better off using this, because they pay 3% on your entire balance whereas Santander only pays 3% on the amount of your balance in excess of £3000. (£600 interest on £20k, so £60 more than 123.)

Is this right? LTSB pays 3% on the full 5K

I-LOV-MONEY

Who is LTSB?