Santander to slash 123 account interest and shake up overdrafts

maman

Dw1985 wrote: »

I know it's not a current account but no one is offering any alternative options with better interest for larger amounts. So if you can lock your hard earned money away, try the atom app accounts.

12m fixed term @ 1.65%
Hope this helps

Yes, I asked in Santander today about 123 Lite just to be sure of options. The guy there (somewhat smugly I thought) told me there aren't many options for current accounts. I have another Club Lloyds current account so I'll probably look at another savings account too.
Not sure whether to leave something in 123 Lite for the cashback. Depends on how many accounts I want to juggle. Would I need to keep it to maintain the Regular Saver for the rest of the year?

colsten

maman wrote: »

Not sure whether to leave something in 123 Lite for the cashback. Depends on how many accounts I want to juggle. Would I need to keep it to maintain the Regular Saver for the rest of the year?

Unless you want to risk your RS being downgraded to a normal saver, you should keep the Lite. Check your T&Cs.

colsten

Dw1985 wrote: »

I know it's not a current account but no one is offering any alternative options with better interest for larger amounts. So if you can lock your hard earned money away, try the atom app accounts.

12m fixed term @ 1.65%
Hope this helps

given that all rates are dreadful, 1.65% isn't bad for a 1-year bond but not the best. You can get 1.7 + bonus and 1.8 at Raisin / HL Active Savings.

maman

colsten wrote: »

Unless you want to risk your RS being downgraded to a normal saver, you should keep the Lite. Check your T&Cs.

Thanks, that's what I suspected. I'll also get the cash back and review when the RS comes to an end.

alanwsg

If I want to keep around £5K in a current account, is there any reason to downgrade to S123 lite?

It seems that when the rate drops to 1%, there's only around £2 difference. Any other pros/cons ?

molerat

You could have that money elsewhere earning interest. £5K in a full 123 will give you £4 interest less £5 fee so a cost of £1. You could have £3k elsewhere at 1% giving you £2.50 interest and £2K in a lite costing you £1 so you would be up £1.50 a month.

alanwsg

molerat wrote: »

You could have that money elsewhere earning interest. £5K in a full 123 will give you £4 interest less £5 fee so a cost of £1. You could have £3k elsewhere at 1% giving you £2.50 interest and £2K in a lite costing you £1 so you would be up £1.50 a month.

Yeah, but then I wouldn't have a balance of around £5K in a current account.
Which is what I'd like to keep.

molerat

alanwsg wrote: »

Yeah, but then I wouldn't have a balance of around £5K in a current account.
Which is what I'd like to keep.

Not in "a" current account but still in current accounts. Why do you want to keep £5K in a single current account ?

colsten

alanwsg wrote: »

If I want to keep around £5K in a current account, is there any reason to downgrade to S123 lite?

It seems that when the rate drops to 1%, there's only around £2 difference. Any other pros/cons ?

If it's a constant £5k, then it's just £2 a year difference, as you say. But it's £2 in favour of the full fat

If your constant balance drops below £4.8k, the Lite would be less expensive than the full fat one.

Figures assume you don't pay tax on savings interest.

alanwsg

molerat wrote: »

Not in "a" current account but still in current accounts. Why do you want to keep £5K in a single current account ?

So I don't have to worry about covering monthly bills without going overdrawn.

Are there any other differences between 'full fat' & 'lite'?