Santander to double 123 Lite fee and shake up current account cashback - MSE News

colsten

Without doing many sums: which is better:

1. an account that pays 0.6% AER on up to £20k, has an unavoidable £60/yr fee, and comes with 'convenience', or 
   
2. an account that pays effectively 1.2% AER on up to £5k, has an avoidable £36/yr fee, and comes with 'inconvenience'; coupled with an account that pays 1.15% on up to £1m and costs nothing.

Other alternatives are available, too. This is just an example.

NB. I am ignoring cashback in the 123, as this is a reward, and you can get rewards in several other accounts

ZeroSum

Doc_N said:

I may be being naive here, but looking at what’s available on the market, taking into account further likely drops on other accounts, and taking into account the convenience of the full fat 123 account, I’m not sure it’s necessarily a no-brainer to switch.

Depends how much you like to have instantly available for large payments, but a £20,000 balance will bring in £120 pa + the cashback to cover the £60 fees, and there are no accounts around I can see to match the convenience.

Sure, you can save a little by switching, but what price simplicity and convenience and very easy access?

There's loads of better options like Lloyd's as colsten mentions above. 

And how much do you really need in a current account?
Marcus is instant access. If you need the cash, it'll be transfered to your current account within a couple of minutes.

ZeroSum

stylus360 said:

I was just about to downgrade to the 123 lite account from the Santander 123 Current Ac, then noticed the £2 fee!
I always hold about £3 -£4k in my current account (laziness).
I get under £2 in 'cashback' so thinking of just switching the standard Ac as above and moving my excess monies to Marcus savings or similar (think it's 1.2% now).
Is this a good idea? The 123 account i currently have is losing me money.
Any other options? I have NEVER switched before and have a lot of things linked to my current AC.
Thanks

Shouldve switched years ago. 123 full fat was pointless unless you have full £20k (even then it wasn't that great)

Halifax have a switching offer on. Free £100 plus £5 a month cashback (plenty of loopholes on the debit card spend requirements)
Do you currently have a Marcus account? As they stopped accepting new signups not so long back (dunno if it's reopened again or not) 

Doc_N

colsten said:

Without doing many sums: which is better:

1. an account that pays 0.6% AER on up to £20k, has an unavoidable £60/yr fee, and comes with 'convenience', or 
   
2. an account that pays effectively 1.2% AER on up to £5k, has an avoidable £36/yr fee, and comes with 'inconvenience'; coupled with an account that pays 1.15% on up to £1m and costs nothing.

Other alternatives are available, too. This is just an example.

NB. I am ignoring cashback in the 123, as this is a reward, and you can get rewards in several other accounts

I take your point, but if you already have the Club Lloyds account the NS&I Direct Saver offering 1% currently is probably the best instant access option, and I’m not sure how instant (as in Faster Payments instant) that is.  

It’s more than 0.6% certainly, but since it’s only £3 pm more you’re paying if you want to keep the 123 cashback, with increased inconvenience, it’s still a balance.

Doc_N

ZeroSum said:

Doc_N said:

I may be being naive here, but looking at what’s available on the market, taking into account further likely drops on other accounts, and taking into account the convenience of the full fat 123 account, I’m not sure it’s necessarily a no-brainer to switch.

Depends how much you like to have instantly available for large payments, but a £20,000 balance will bring in £120 pa + the cashback to cover the £60 fees, and there are no accounts around I can see to match the convenience.

Sure, you can save a little by switching, but what price simplicity and convenience and very easy access?

There's loads of better options like Lloyd's as colsten mentions above. 

And how much do you really need in a current account?
Marcus is instant access. If you need the cash, it'll be transfered to your current account within a couple of minutes.

I use Marcus. Isn’t the rate dropping to 0.7%?

stylus360

I have just checked an Marcus is only 0.7%, i opened it when it was on here as top recommendation/new think it was 1.5%?
I already hold a basic account with Halifax and TSB so i doubt i would be eligable for the switch bonus etc.
I also presumed if i log in and switch via Santander Online banking i would keep same account details?
If not how would it effect my Marcus savings, would i just need to notify of account details change??
Thanks

ZeroSum

stylus360 said:

I have just checked an Marcus is only 0.7%, i opened it when it was on here as top recommendation/new think it was 1.5%?
I already hold a basic account with Halifax and TSB so i doubt i would be eligable for the switch bonus etc.
I also presumed if i log in and switch via Santander Online banking i would keep same account details?
If not how would it effect my Marcus savings, would i just need to notify of account details change??
Thanks

Mines still 1.2%

colsten

Doc_N said:

colsten said:

Without doing many sums: which is better:

1. an account that pays 0.6% AER on up to £20k, has an unavoidable £60/yr fee, and comes with 'convenience', or 
   
2. an account that pays effectively 1.2% AER on up to £5k, has an avoidable £36/yr fee, and comes with 'inconvenience'; coupled with an account that pays 1.15% on up to £1m and costs nothing.

Other alternatives are available, too. This is just an example.

NB. I am ignoring cashback in the 123, as this is a reward, and you can get rewards in several other accounts

I take your point, but if you already have the Club Lloyds account the NS&I Direct Saver offering 1% currently is probably the best instant access option, and I’m not sure how instant (as in Faster Payments instant) that is.  

It’s more than 0.6% certainly, but since it’s only £3 pm more you’re paying if you want to keep the 123 cashback, with increased inconvenience, it’s still a balance.

I wasn't actually thinking of Club Lloyds (which won't be paying 1.2% on £5K for much longer, anyway) but about the Halifax Reward. I was also further thinking of the 1.15% NS&I Income Bonds. I grant you that withdrawing from NS&I isn't instant (usually next banking day) but I would suggest you don't find yourself suddenly, and regularly, out of the blue needing to top up your current account with lots of money within minutes.

The full fat 123 (which you suggested) costs £5/month, not £3.

stylus360

ZeroSum said:

stylus360 said:

I have just checked an Marcus is only 0.7%, i opened it when it was on here as top recommendation/new think it was 1.5%?
I already hold a basic account with Halifax and TSB so i doubt i would be eligable for the switch bonus etc.
I also presumed if i log in and switch via Santander Online banking i would keep same account details?
If not how would it effect my Marcus savings, would i just need to notify of account details change??
Thanks

Mines still 1.2%

Sorry, i'm wrong. I just glimpsed the log in page and give the rate of the fixed savings account they offer which is 0.7%.
On logging in it shows i'm receiving 1.05%.
Think i will just switch to a classic Santander ac and divert extra monies to Marcus.
Cheers

Doc_N

colsten said:

Doc_N said:

colsten said:

Without doing many sums: which is better:

1. an account that pays 0.6% AER on up to £20k, has an unavoidable £60/yr fee, and comes with 'convenience', or 
   
2. an account that pays effectively 1.2% AER on up to £5k, has an avoidable £36/yr fee, and comes with 'inconvenience'; coupled with an account that pays 1.15% on up to £1m and costs nothing.

Other alternatives are available, too. This is just an example.

NB. I am ignoring cashback in the 123, as this is a reward, and you can get rewards in several other accounts

I take your point, but if you already have the Club Lloyds account the NS&I Direct Saver offering 1% currently is probably the best instant access option, and I’m not sure how instant (as in Faster Payments instant) that is.  

It’s more than 0.6% certainly, but since it’s only £3 pm more you’re paying if you want to keep the 123 cashback, with increased inconvenience, it’s still a balance.

I wasn't actually thinking of Club Lloyds (which won't be paying 1.2% on £5K for much longer, anyway) but about the Halifax Reward. I was also further thinking of the 1.15% NS&I Income Bonds. I grant you that withdrawing from NS&I isn't instant (usually next banking day) but I would suggest you don't find yourself suddenly, and regularly, out of the blue needing to top up your current account with lots of money within minutes.

The full fat 123 (which you suggested) costs £5/month, not £3.

 I appreciate that the full 123 account costs £5 pm, which is why I said ‘since it’s only £3 pm more you’re paying if you want to keep the 123 cashback‘. The cashback on the 123 accounts (£2 or £5 pm) can be worth far more than the cost, particularly when you have high bills.

I’ve got the Halifax accounts too, plus all the other easy options, but ultimately it’s still a personal balance between cost and convenience.  People have different needs and requirements. For me, the full fat 123 account still seems worthwhile.