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

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Four million Santander customers will see the cashback offered on their 123 and 123 Lite accounts changed from October - and the fee on the 123 Lite account is being doubled to £2/month...

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'Santander to double 123 Lite fee and shake up current account cashback'

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  • schiff
    schiff Posts: 20,101 Forumite
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    They can't resist tinkering. I wonder what will come next. It makes for a £2 monthly reduction for me if I decide to opt for Lite (not decided yet).
  • garfield33
    garfield33 Posts: 304 Forumite
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    Hi everyone - a question about credit ratings (it is related to this thread!)
    I downgraded to Lite a few weeks ago, and I earn enough cashback to just cover the fee (both current £1 and upcoming £2).
    The only reason I want to keep the account is that I've read (can't remember where, might not be true) that one of factors that credit ratings are based on, is the average age of current accounts held - this is one of my oldest current accounts so brings my average up. (I'm about to close some of the newer ones I opened for the interest, such as Tesco.)
    If this isn't true, then once my Santander regular saver ends, then I don't need to keep the 123 Lite.
    Does anyone know if this is true?
  • schiff
    schiff Posts: 20,101 Forumite
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    I think it depends on what you need to protect your credit rating for. An upcoming mortgage perhaps?
  • Sea_Shell
    Sea_Shell Posts: 9,492 Forumite
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    Disappointing.  Although we'll still get about £2.30 net each month, whilst running the account on minimum (or near zero) balance.
    How's it going, AKA, Nutwatch? - 12 month spends to date = 2.38% of current retirement "pot" (as at end April 2024)
  • Be_Happy
    Be_Happy Posts: 1,391 Forumite
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    edited 22 July 2020 at 11:18AM
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    Do they not know that Scotland and NI do not pay monthly DD water bills.  Part of our Council Tax already includes water charge.  If Council Tax cashback is 1% how are they going to calculate the water charge part of CC at 3%???  Looks like I'm going to get £2.05 cash back and pay £2 fee!
  • 20SmthngSver
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    I specifically opened a 123 Lite when I bought my first home in February and I pay my mortgage and council tax and mobile through it. I get £3.50 a month from mortgage and £1.07 a month from council, and pennies for my mobile.  It doesn't seem worth the hassle of the having the account based on this anymore.

    I don't see the point in keeping the account past October. Give it another six months after, and they will alter the cashback again and before you know it, £3 a month (Barclays pay out £7 and charge £4, NatWest pays out £5 and charges £2). This change tells me not many are using the water element but it's costing too much to pay out for peoples media charges. My dads internet, TV and mobiles each month is about £150. Water is £30. It's designed for them to pay out less, while charging more for it.

    If people close their accounts in protest, they will lose money. It's time people switched and closed more often to show they aren't happy. 
  • 20SmthngSver
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    Hi everyone - a question about credit ratings (it is related to this thread!)
    I downgraded to Lite a few weeks ago, and I earn enough cashback to just cover the fee (both current £1 and upcoming £2).
    The only reason I want to keep the account is that I've read (can't remember where, might not be true) that one of factors that credit ratings are based on, is the average age of current accounts held - this is one of my oldest current accounts so brings my average up. (I'm about to close some of the newer ones I opened for the interest, such as Tesco.)
    If this isn't true, then once my Santander regular saver ends, then I don't need to keep the 123 Lite.
    Does anyone know if this is true?
    You will have to keep the 123 Lite for as long as you are funding the Regular Saver until it matures, unless you downgrade to a free Everyday Current Account, but if you have the 123 rate for the Regular Saver, this may not be possible. 
  • Sea_Shell
    Sea_Shell Posts: 9,492 Forumite
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    Be_Happy said:
    Do they not know that Scotland and NI do not pay monthly DD water bills.  Part of our Council Tax already includes water charge.  If Council Tax cashback is 1% how are they going to calculate the water charge part of CC at 3%???

    I doubt it'll get split out at all, if you just pay one, inclusive, bill.
    How's it going, AKA, Nutwatch? - 12 month spends to date = 2.38% of current retirement "pot" (as at end April 2024)
  • schiff
    schiff Posts: 20,101 Forumite
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    With the cash-back being the same on each account, it boils down to the £3 difference in the charge. Keeping £6K in the full produces the £3 per month needed. That £6K in Marcus (I'm one of the lucky ones) would make £2.25 per month more. The Marcus rate may not last. Still time to reflect!
  • roddydogs
    roddydogs Posts: 7,478 Forumite
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    FFFS another £1 pm, obviously cause so many are on lite now.
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