Effect of downgrading current account on isa - Santander

MintyBear

Hi all, new here and my first post, so apologies if this is in the wrong place?? 

If I downgrade my Santander 123 account to the lite account will it affect my fixed rate isa with Santander - it still has a year left to run before it matures?  

If turns out better to switch my current account out of Santander altogether, how will that affect my fixed rate isa? 

masonic

Did the fixed rate ISA require you to hold a Santander 123 account as part of its eligibility criteria?

AnotherJoe

Is there a condition that in order to have an ISA with Santander you must have a S123 account? Seems unlikely to me but ....

MintyBear

masonic said:

Did the fixed rate ISA require you to hold a Santander 123 account as part of its eligibility criteria?

Genuinely can’t remember and can’t find any documents to say 😟. I do recall that I got the higher interest rate of 1.9% as I was a 123 customer, but not sure if that still applies to the lite 🤔

MintyBear

AnotherJoe said:

Is there a condition that in order to have an ISA with Santander you must have a S123 account? Seems unlikely to me but ....

I did get a higher rate of 1.9%! As a 123 customer, but don’t know if this was for the life of the isa or just at the time of opening? I could only pay in at the time of opening and not add to it in year 2.

masonic

MintyBear said:

masonic said:

Did the fixed rate ISA require you to hold a Santander 123 account as part of its eligibility criteria?

Genuinely can’t remember and can’t find any documents to say 😟. I do recall that I got the higher interest rate of 1.9% as I was a 123 customer, but not sure if that still applies to the lite 🤔

In that case you may see your interest rate fall, or you might not. T&C documents are very useful and well worth keeping. I suspect it is more likely that the rate is fixed regardless of what you do with your current account after applying, but without knowing the specific product you hold I can't comment any further.

MintyBear

I’ve found the isa detail on line for the one I have, and think you are right @masonic.  It says ‘at the time of opening’ I have to have ‘one of the 123 world accounts’.  Doesn’t say anything about holding the account throughout, so presumably irrelevant if I change to the lite or leave altogether......  happy days 😁 thanks both so much 😁

akh43

I am in the same position as I have the same ISA and have been wondering whether it will be affected if I leave as when I have done a check on the new rates I will only make pennies after the fee goes up to £2 a month.  

I remember at the time of taking the ISA out in April 2019 there were 2 ISAs available one anyone could apply for and the 1.9% was a 2 year fixed and a higher rate as you had to have a 123 account to take out the ISA.  According to my online banking this is called "123 2 YR FIXED RATE ISA 01/07/2021"   I have searched and can find no paperwork.  I can only assume it was online only and I cant remember if I downloaded any T&Cs, but my last computer which I had at the time I opened the account has since broken and I have no access to anything I downloaded to it. 

As they only have one type of ISA now the current T&Cs on their website do not mention this ISA.

MintyBear

This is what I found, hope this helps?   I’m too new to post links here, but have taken photo instead....

badger09

Any preferential rates @ Santander have only referred to '123 World' (or Select), so would apply to both the standard 123 current account and the 123 Lite