Switching back from Lite to 1I2I3

schiff

Santander has been my main go-to current account for many years. All my SOs, the bulk of my DDs go through it and anything involving quick payments/deposits has worked like a dream. With Marcus offering 1.05% and later Skipton 1.2%, I somewhat reluctantly opted for the Lite version. When Lloyds dropped their rate I moved most of my £5000 there to Marcus etc. Setting out my plan for the immediate future.
 But then things changed - Marcus is now 0.70%, Lloyds is 0.60% (up to £4K) and the Santander 1I2I3 is also 0.60%. So there's not much to choose between them - except that the Santander is by far the most 'suitable' for me. I try to keep the Lite balance at £100 or so but with all the activity in it there is a lot of faff moving money back and forth to and from Marcus/Skipton. So I'm thinking of going back to the 1I2I3. My cash-back has always been more than £5 so I don't subscribe to the generally held view that the cash-back charge reduces the effective rate - I do get interest on my full balance.

wiseonesomeofthetime

I say, if it suits you, then do it.

It would not be everyone's cup of tea, however, it is what works best for you that ultimately matters.

All the best.

PS. After the changes, my S123 Lite will net me just 56p (as I type), but I shall still keep it, as it works for me

colsten

You should take the 123 fee into consideration as it does reduce what the account yields. Mind you, there's not much to choose between the Lite and the 123 once the Lite goes to £2/mth.

FWIW, I will stick with the Lite, on minimum balance and use my Skipton 1.2%, or my Al Rayan 1.16%, for as long as they are on those rates, alongside Regular Savers that mature and re-start on a monthly basis. You mention the Skipton - why would you not use that one for your instant access money if you have the account? 

I agree with wiseonesomeofthetime though - do what suits you.

tempus_fugit

I’m finally moving away from Santander following successive reductions in the “benefits” and increases in the fees. The final nail in the coffin came today when, yet again, they are threatening to remove my debit card because I “haven’t used it”. I assume they are insisting that I physically go into a shop to use it (not good in these times) as I use it online but that doesn’t seem to count. As far as I am aware they are the only bank that do this. Will be switching to First Direct at the end of the month.

schiff

colsten said:

You should take the 123 fee into consideration as it does reduce what the account yields. Mind you, there's not much to choose between the Lite and the 123 once the Lite goes to £2/mth.

FWIW, I will stick with the Lite, on minimum balance and use my Skipton 1.2%, or my Al Rayan 1.16%, for as long as they are on those rates, alongside Regular Savers that mature and re-start on a monthly basis. You mention the Skipton - why would you not use that one for your instant access money if you have the account? 

I agree with wiseonesomeofthetime though - do what suits you.

Can you imagine shifting 25/30 SOs and 10 DDs to another bank!! And another bank with its interest rate variable and the deal due to end in 12 months. No thanks.
And I would get the full interest on my balance - if my cash-back is £7, it's £2 pm clear profit. £5K at 0.60%, it's £2.50 pm clear profit. 

colsten

Eh? Where did I say anything about shifting any SOs or DDs?

colsten

tempus_fugit said:

I’m finally moving away from Santander following successive reductions in the “benefits” and increases in the fees. The final nail in the coffin came today when, yet again, they are threatening to remove my debit card because I “haven’t used it”. I assume they are insisting that I physically go into a shop to use it (not good in these times) as I use it online but that doesn’t seem to count. As far as I am aware they are the only bank that do this. Will be switching to First Direct at the end of the month.

The only time I have ever used my remaining Santander debit card in the last 8 years is very, very occasionally for an online transaction. I have had no communication from Santander threatening to remove my debit card.

fwor

schiff said:

Can you imagine shifting 25/30 SOs and 10 DDs to another bank!!

I admit I don't have extensive experience in that area, but 3 months ago when I finally got fed up with Santander's frequent chopping of what the customer gets and switched to Lloyds, I had no problems at all with my existing SOs, DDs and payee list transferring across. I didn't have to do anything at all - they just continued to work as normal.

I should add that I didn't make the switch for purely financial reasons - in the overall scheme of things the financial outcome with Lloyds is hardly any different. I made the change primarily to send a message to Santander that they will lose customers if they mess us about. Whether they are listening for messages like that, or care one way or the other, I don't know.

RG2015

colsten said:

tempus_fugit said:

I’m finally moving away from Santander following successive reductions in the “benefits” and increases in the fees. The final nail in the coffin came today when, yet again, they are threatening to remove my debit card because I “haven’t used it”. I assume they are insisting that I physically go into a shop to use it (not good in these times) as I use it online but that doesn’t seem to count. As far as I am aware they are the only bank that do this. Will be switching to First Direct at the end of the month.

The only time I have ever used my remaining Santander debit card in the last 8 years is very, very occasionally for an online transaction. I have had no communication from Santander threatening to remove my debit card.

Got a letter this morning saying they were not going to send me a replacement debit card unless I used it at least once before 20 December.

Neil_Jones

schiff said:

Can you imagine shifting 25/30 SOs and 10 DDs to another bank!! And another bank with its interest rate variable and the deal due to end in 12 months. No thanks.
And I would get the full interest on my balance - if my cash-back is £7, it's £2 pm clear profit. £5K at 0.60%, it's £2.50 pm clear profit. 

If you use the CASS, the direct debits and the standing orders move themselves.  So that excuse for not doing it has gone.

surreysaver

colsten said:

tempus_fugit said:

I’m finally moving away from Santander following successive reductions in the “benefits” and increases in the fees. The final nail in the coffin came today when, yet again, they are threatening to remove my debit card because I “haven’t used it”. I assume they are insisting that I physically go into a shop to use it (not good in these times) as I use it online but that doesn’t seem to count. As far as I am aware they are the only bank that do this. Will be switching to First Direct at the end of the month.

The only time I have ever used my remaining Santander debit card in the last 8 years is very, very occasionally for an online transaction. I have had no communication from Santander threatening to remove my debit card.

My 'main' account is Santander Lite. I always earn more than £5 cashback, as my mortgage is with Santander. I never use the debit card, and they haven't threatened to remove mine either