Santander 123 options

soulsaver

ecnirp98 said:

I am debating what to do with my 2 Santander 123 accounts (mine & joint), each have £20,000 in, the 1% interest rate isn't that much lower than the Instant access rates currently available.

1% interest less £60 fees? £200-60 =140 = 0.7%. on £20K. Even less on lower amounts.

alanwsg

If you're going to keep £5000 in your current account, you may as well stick with the 'full fat' 123.

kev2009

Hi,
Same here, I was going to move to a lite account, pay £12 a year instead of £60 and then leave 1.5k in the account, which will get reduced during the month and effectively topped back up at the end of the month to cover the next months etc but seeing as can only get 1.2% now n Marcus and similar accounts, makes me think is it still worth doing?  
Also considering a fixed rate but with companies furloughing people, it's a bit of a gamble as never know i will be furloughed or not at the moment and no point locking it away for 1 year if i'll need it.
Kev

colsten

alanwsg said:

If you're going to keep £5000 in your current account, you may as well stick with the 'full fat' 123.

It totally depends on whether you can get better interest elsewhere, with access as you need it. In my case, keeping my full-fat 123 would be like throwing £51 down the toilet. As you can see from the spreadsheet I posted earlier.

Kendall80

soulsaver said:

ecnirp98 said:

I am debating what to do with my 2 Santander 123 accounts (mine & joint), each have £20,000 in, the 1% interest rate isn't that much lower than the Instant access rates currently available.

1% interest less £60 fees? £200-60 =140 = 0.7%. on £20K. Even less on lower amounts.

Assuming it continues you would need to consider the cashback which for me currently accounts for the fee.

colsten

Kendall80 said:

soulsaver said:

ecnirp98 said:

I am debating what to do with my 2 Santander 123 accounts (mine & joint), each have £20,000 in, the 1% interest rate isn't that much lower than the Instant access rates currently available.

1% interest less £60 fees? £200-60 =140 = 0.7%. on £20K. Even less on lower amounts.

Assuming it continues you would need to consider the cashback which for me currently accounts for the fee.

To get the cashback, you don't have to keep £20k in the 123 Lite. All you need in there is enough money to pay whatever needs paying, when it needs paying.

schiff

My Santander has been my main account for years. I've got 13 standing orders and 12 direct debits coming out of it every month, pensions go in as well as some investment income from elsewhere, my cash-back covers the fee. So I'm not shifting. But I will start keeping a £5K balance in my Club Lloyds account which gives me an effective 1.2% pa interest.

colsten

Good idea to use a Club Lloyds for 1.2% AER if you don’t have a higher paying instant access account elsewhere. You would have to maintain a steady £5k balance to achieve 1.2% though. From June/July onwards, you could also consider a Halifax Reward for 1.2% for £5k.

Out of interest, @schiff, what kind of account is “my Santander” - a full fat 123, a 123 Lite, an Everyday? 

schiff

colsten said:

Good idea to use a Club Lloyds for 1.2% AER if you don’t have a higher paying instant access account elsewhere. You would have to maintain a steady £5k balance to achieve 1.2% though. From June/July onwards, you could also consider a Halifax Reward for 1.2% for £5k.

Out of interest, @schiff, what kind of account is “my Santander” - a full fat 123, a 123 Lite, an Everyday? 

Full fat. I've had it since Alliance & Leicester days. Allocated a Financial Adviser when I became Select! Met him once but I knew more than he did. Explained Matched Betting to him which may have facilitated all my bookie/betting exchanges transactions going through on the nod (before I gave it up). Didn't even have to go through VbyV! 
Can't imagine being without it.

colsten

I still got a full fat one myself (had 4 of them once upon a time....). I will change to Lite when the interest rate drops.