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

whattochoose

PRAISETHESUN said:

whattochoose said:

I currently have the full 123 account, and had intended transferring to the "Lite" account from August when the interest rate drops to 0.60%, at the same time moving most of my money to one of the NSI acounts.
However, now that the fee for maintaining the "Lite" account is doubling, I'll be giving that a miss. I'd still like to retain some kind of Santander account, if only because of the existing direct debit payments I make, although I know I'll be forgoing cashback in the future but the amounts will be negligible anyway.
I will have no need of a Santander current account for any other reason, such as overdraft facilities. The two options which appear to be available are Santander's Everyday Current Account, or their Basic Current Account.
So long as I'm able to pay my bills by direct debit through either account, does it really matter which I choose?
Thank you.

You'll probably find that you won't get a choice - they typically only give out their basic account to people who can't get a current account elsewhere. The everyday account is probably what you're after.

TBH if the 123 Lite pays a net positive cashback after the fee I'd still stick with it over downgrading. It's only really worth downgrading it if like me you're now going to be paying more in fees that you'll get in cashback.

Unfortunately, that will be the case, I'll be about 60p a month down, which isn't a fortune, but I'd rather not have to pay it.

PRAISETHESUN

whattochoose said:

PRAISETHESUN said:

whattochoose said:

I currently have the full 123 account, and had intended transferring to the "Lite" account from August when the interest rate drops to 0.60%, at the same time moving most of my money to one of the NSI acounts.
However, now that the fee for maintaining the "Lite" account is doubling, I'll be giving that a miss. I'd still like to retain some kind of Santander account, if only because of the existing direct debit payments I make, although I know I'll be forgoing cashback in the future but the amounts will be negligible anyway.
I will have no need of a Santander current account for any other reason, such as overdraft facilities. The two options which appear to be available are Santander's Everyday Current Account, or their Basic Current Account.
So long as I'm able to pay my bills by direct debit through either account, does it really matter which I choose?
Thank you.

You'll probably find that you won't get a choice - they typically only give out their basic account to people who can't get a current account elsewhere. The everyday account is probably what you're after.

TBH if the 123 Lite pays a net positive cashback after the fee I'd still stick with it over downgrading. It's only really worth downgrading it if like me you're now going to be paying more in fees that you'll get in cashback.

Unfortunately, that will be the case, I'll be about 60p a month down, which isn't a fortune, but I'd rather not have to pay it.

Fair enough then - downgrade away! The everyday current account will be what you want, but hold off until the last cashback pays out in Oct

And having just quickly spoken to a rep from Santander, here's what they had to say RE: the regular eSaver:

Info: We're transferring you through to someone who can help.

Info: You are now chatting to Peter.

14:37, Jul 23

You: G’day there. I recently received some correspondence regarding changes you’re making to the 123 Lite Current Account, and I just wanted to clarify something if you’re able to help? I hold a Regular eSaver account alongside my 123 Lite Current Account and I wanted someone to confirm what would happen if I chose to downgrade my 123 Lite Current Account to an Everyday Current Account. Would my Regular eSaver account remain open or would you close it/transfer it to another product as I would no longer be a 123 customer? Thanks!

14:37, Jul 23

14:38, Jul 23

Peter: Hello! I can confirm that the Regular eSaver would remain open as it is until it matures, once it matures it would divert to a Esaver 😄

14:38, Jul 23

14:39, Jul 23

You: Awesome. That's what I wanted to hear. Cheers!

colsten

PRAISETHESUN said:

whattochoose said:

PRAISETHESUN said:

whattochoose said:

I currently have the full 123 account, and had intended transferring to the "Lite" account from August when the interest rate drops to 0.60%, at the same time moving most of my money to one of the NSI acounts.
However, now that the fee for maintaining the "Lite" account is doubling, I'll be giving that a miss. I'd still like to retain some kind of Santander account, if only because of the existing direct debit payments I make, although I know I'll be forgoing cashback in the future but the amounts will be negligible anyway.
I will have no need of a Santander current account for any other reason, such as overdraft facilities. The two options which appear to be available are Santander's Everyday Current Account, or their Basic Current Account.
So long as I'm able to pay my bills by direct debit through either account, does it really matter which I choose?
Thank you.

You'll probably find that you won't get a choice - they typically only give out their basic account to people who can't get a current account elsewhere. The everyday account is probably what you're after.

TBH if the 123 Lite pays a net positive cashback after the fee I'd still stick with it over downgrading. It's only really worth downgrading it if like me you're now going to be paying more in fees that you'll get in cashback.

Unfortunately, that will be the case, I'll be about 60p a month down, which isn't a fortune, but I'd rather not have to pay it.

Fair enough then - downgrade away! The everyday current account will be what you want, but hold off until the last cashback pays out in Oct

And having just quickly spoken to a rep from Santander, here's what they had to say RE: the regular eSaver:

Info: We're transferring you through to someone who can help.

Info: You are now chatting to Peter.

14:37, Jul 23

You: G’day there. I recently received some correspondence regarding changes you’re making to the 123 Lite Current Account, and I just wanted to clarify something if you’re able to help? I hold a Regular eSaver account alongside my 123 Lite Current Account and I wanted someone to confirm what would happen if I chose to downgrade my 123 Lite Current Account to an Everyday Current Account. Would my Regular eSaver account remain open or would you close it/transfer it to another product as I would no longer be a 123 customer? Thanks!

14:37, Jul 23

14:38, Jul 23

Peter: Hello! I can confirm that the Regular eSaver would remain open as it is until it matures, once it matures it would divert to a Esaver 😄

14:38, Jul 23

14:39, Jul 23

You: Awesome. That's what I wanted to hear. Cheers!

Keep hold of that transcript as it is in direct contradiction to what another poster said happened to his wife. I tend to think that you got the right advice, but you never know.

StephenM_2

I reckon I will be £38 per annum down. Just about out-weighing the £36 per annum recent increase from Halifax.

badger09

schiff said:

I'm re-posting as this thread is more relevant:

I currently have the full fat. My cash-back has arrived today as expected. My next interest is due on August 7th and on that same day my monthly £5 charge is normally levied. If I switch to the Lite version on say August 4th, will I still be charged £5? Or £1? Or nothing? I do recall that people have been through this routine.
TYIA

I've just replied to your post on the other thread

"From memory, if you switch just before your normal fee date, you won't be charged anything for that month, and the new monthly charge isn't taken until the following month.  

Just checked back and that's what happened."

ask66

schiff said:

I'm re-posting as this thread is more relevant:

I currently have the full fat. My cash-back has arrived today as expected. My next interest is due on August 7th and on that same day my monthly £5 charge is normally levied. If I switch to the Lite version on say August 4th, will I still be charged £5? Or £1? Or nothing? I do recall that people have been through this routine.
TYIA

Hi, not sure if this will help you @schiff but may help others... I've just transferred (over the phone) my full 123 down to an Everyday Current account.  Done instantly - well, in 10 minutes.  £5 monthly fee (paid in arrears) was due tomorrow so think I've dodged paying that.  Having switched just before the month was up, I'd forfeit any cashback (also payable tomorrow), but that's not a problem as I don't generally receive cashback on this account.  I will however expect to receive interest up to the date of transfer - found this out by reading T&Cs, two Santander staff told me differently but I eventually got a chat transcript confirming what the T&Cs said!

granta

With the 123 Lite changes, I'm wondering if you can still forego paying the fee if you have no direct debits going out? That's been the case so far.

akh43

Does anyone know if my 2 year fixed rate member's ISA taken out in April 19, due to mature in April 21, will be affected if I close my 123 Lite account in October?

RG2015

ZeroSum said:h

RG2015 said:

ZeroSum said:

afis1904 said:

ZeroSum said:

20SmthngSver said:

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. 

Natwest & Barclays can be any 2 DD's
Many of us on here run several accounts to maximise all the cashback
For me closing my santander account is just cutting my nose of to spite my face. I'll still clear around £3 a month

Also the natwest one, you lose a £1 if you don't have a brand new phone. And in my opinion one of the worst banks going for customer services 

The Nat West app will literally work on any phone that came out in the last 7-10 years, hardly brand new

No it doesn't. 
My last phone was about 4 year old & it didn't work

Needs to be minimum of Android 6, which wasn't put into phones until about 2016

A four year old phone is not brand new.

2.5 year old. 
Might not be 'brand' new (yes I was using creative language) but the point still stands that they didn't support a phone that wasn't old, and that they're alienating customers who don't upgrade phone every 2 year

I understand your point and 2.5 years is certainly not old so it is a problem. I have had the app on my ipad for several years so must continue to meet the system requirements.

I don’t know much about this but I thought that like the ipad, phones regularly got their operating system updated automatically.

ZeroSum

RG2015 said:

ZeroSum said:h

RG2015 said:

ZeroSum said:

afis1904 said:

ZeroSum said:

20SmthngSver said:

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. 

Natwest & Barclays can be any 2 DD's
Many of us on here run several accounts to maximise all the cashback
For me closing my santander account is just cutting my nose of to spite my face. I'll still clear around £3 a month

Also the natwest one, you lose a £1 if you don't have a brand new phone. And in my opinion one of the worst banks going for customer services 

The Nat West app will literally work on any phone that came out in the last 7-10 years, hardly brand new

No it doesn't. 
My last phone was about 4 year old & it didn't work

Needs to be minimum of Android 6, which wasn't put into phones until about 2016

A four year old phone is not brand new.

2.5 year old. 
Might not be 'brand' new (yes I was using creative language) but the point still stands that they didn't support a phone that wasn't old, and that they're alienating customers who don't upgrade phone every 2 year

I understand your point and 2.5 years is certainly not old so it is a problem. I have had the app on my ipad for several years so must continue to meet the system requirements.

I don’t know much about this but I thought that like the ipad, phones regularly got their operating system updated automatically.

Think it's just apple do that. 
Android (or might just be lower spec ones), what's on the phone is on the phone & that's it. Once apps stop working youre forced into getting a new phone.