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

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  • stylus360
    stylus360 Posts: 448 Forumite
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    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
    Doc_N Posts: 8,549 Forumite
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    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.


  • crumpet_man
    crumpet_man Posts: 737 Forumite
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    It probably costs about £10 per month to keep the full 123 compared with changing to 123 lite and Marcus for savings.  For some that is definitely worthwhile to cut down on the banking admin.
  • stylus360
    stylus360 Posts: 448 Forumite
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    I recall having three Santander 123 accounts 'back in the day' when rates were good, all maxed to £20k.

  • ZeroSum
    ZeroSum Posts: 1,201 Forumite
    Fifth Anniversary 1,000 Posts Name Dropper
    It probably costs about £10 per month to keep the full 123 compared with changing to 123 lite and Marcus for savings.  For some that is definitely worthwhile to cut down on the banking admin.
    Yeah, but then this is a money saving forum after all, so you're going to get a lot of disagreement that effectively giving the bank £10 is worth it. 
  • Doc_N
    Doc_N Posts: 8,549 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    It probably costs about £10 per month to keep the full 123 compared with changing to 123 lite and Marcus for savings.  For some that is definitely worthwhile to cut down on the banking admin.
    After the reduction of Marcus to 0.7% I’d be genuinely interested in the calculation of that £10 per month. 
  • colsten
    colsten Posts: 17,597 Forumite
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    Well, Marcus isn't exactly the only account at your disposition.
  • Doc_N
    Doc_N Posts: 8,549 Forumite
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    colsten said:
    Well, Marcus isn't exactly the only account at your disposition.
    It’s the only option I know of which will guarantee me the genuinely immediate access that I’m looking for though.  Are there others?
  • RG2015
    RG2015 Posts: 6,061 Forumite
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    Doc_N said:
    It probably costs about £10 per month to keep the full 123 compared with changing to 123 lite and Marcus for savings.  For some that is definitely worthwhile to cut down on the banking admin.
    After the reduction of Marcus to 0.7% I’d be genuinely interested in the calculation of that £10 per month. 
    Is this Marcus reduction to 0.70% just speculation?
  • Doc_N
    Doc_N Posts: 8,549 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    RG2015 said:
    Doc_N said:
    It probably costs about £10 per month to keep the full 123 compared with changing to 123 lite and Marcus for savings.  For some that is definitely worthwhile to cut down on the banking admin.
    After the reduction of Marcus to 0.7% I’d be genuinely interested in the calculation of that £10 per month. 
    Is this Marcus reduction to 0.70% just speculation?
    Not entirely. It’s the rate currently on offer and past form suggests all existing accounts will drop accordingly.
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