Is it still worth switching from Santander 123 to the Lite version?

pollypenny

I'm wondering if Marcus will be following suit. I don't think I can be bothered moving money for a couple of quid if the second rate will go down too.  

Cisco001

pollypenny said:

I'm wondering if Marcus will be following suit. I don't think I can be bothered moving money for a couple of quid if the second rate will go down too.  

NS&I income bond doing 1.15%. Government probably need extra money?

I don't put all my saving in Marcus. Just in case.

RG2015

Cisco001 said:

pollypenny said:

I'm wondering if Marcus will be following suit. I don't think I can be bothered moving money for a couple of quid if the second rate will go down too.  

NS&I income bond doing 1.15%. Government probably need extra money?

Probably?

The original sentiment was that the rate would last as long as the crisis continued. I guess though that all of the old rules will be consigned to history.

colsten

Assuming that the 1.2% in Marcus, RCI etc will continue to be available: Come August, you can make at least twice as much a year if you split your £20k into £11k savings and £9k in a 123 Lite, compared with keeping £20k in a full-fat 123. Even before then, there's a good financial case for most full-fat account holders. Whether it's good enough for you, only your can tell.

koru

Oh, I hadn't heard that. It probably tips the balance to overcome my inertia. Though perhaps Marcus will also reduce again by that time.

wallofbeans

Hi All,
Looking at getting rid of my 123 account. The money I make it all from the interest and only a tiny ammount from the cashback. I'm tempted to keep the account in some form though, to use to switch in future and to look good as a long standing account for credit score etc. Can I keep it open somehow without fees?

Connie

wallofbeans said:

Hi All,
Looking at getting rid of my 123 account. The money I make it all from the interest and only a tiny ammount from the cashback. I'm tempted to keep the account in some form though, to use to switch in future and to look good as a long standing account for credit score etc. Can I keep it open somehow without fees?

No, you can't.

But if you convert it to 123 Lite you keep the same account number, etc,  so for credit score purposes it's still the same account .  Not "without fees", but reducing them from £60 to £12 per year.

colsten

Connie said:

wallofbeans said:

Hi All,
Looking at getting rid of my 123 account. The money I make it all from the interest and only a tiny ammount from the cashback. I'm tempted to keep the account in some form though, to use to switch in future and to look good as a long standing account for credit score etc. Can I keep it open somehow without fees?

No, you can't.

But if you convert it to 123 Lite you keep the same account number, etc,  so for credit score purposes it's still the same account .  Not "without fees", but reducing them from £60 to £12 per year.

Yes you can.

You just "upgrade" to a Santander Everyday account, which has no fees.

inspectorperez

Been with good old Girobank then Alliance & Leicester, followed by Santander for what feels like my whole adult life. Never ever had reason to criticise the service over this whole time, but feel that the time is now right to make some changes. Whittled down the balance on the 123 Current account and transferred into 123 Lite. All happened seamlessly within a 24 hour time frame and retain all the relevant data in terms of account number, PIN, standing orders, direct debits etc. The days of 3% on balances up to £20K could never be sustained I guess, but have to say very disappointed with monthly fee of £5 not being reduced following the destruction of the interest rate. At least the cash back is still available and that more than covers the cost of the monthly charges.

I know for a fact that my adult children are following suit, so I believe if that pattern of reaction is replicated across a reasonable proportion of Santander customers, they will see a sizeable reduction in customers' funds.

wallofbeans

Changed to everyday account. But I can't get them to let me move money out of it. It's been refused twice now. I had to call them and unblock it the first time, and it's just happened again. Does anyone have tips on how to get money out without this happening? I assume going into a branch and doing it the old fashioned way would work but that's not an option currently. I hate talking (waiting) to banks over the phone and just want to move my money online...