Santander 123 - Back to Being Worth it?

Daliah

anotheruser said:

So people use savings accounts as current accounts?

Not really, as most savings accounts don't offer SOs and DDs. However, for many years now, there have been some current accounts that offered themselves as savings accounts at times, albeit for limited amounts of balances. 

anotheruser said:

I think the full fat 123 would have netted us about £60 for the year, the lite was perhaps a little less but I lothe paying for a bank account.

A fully loaded full fat 123 netted £540 for many years, way more than you would have got in any savings account, and before accounting for any cashback any DDs might have attracted. The fact that there was a monthly charge isn't really relevant, as the net amount of profit was still higher than you could get anywhere else for instant access cash funds. Sadly, the profitable days of the 123 full fat account are over but there were others, such as the Virgin Money M Plus or some Lloyds and BOS accounts, which were of interest (literally) for a while. Good accounts come and go, you just need to keep your eye on the ball. The MSE Forum is a brilliant place to keep up with the changes.

anotheruser said:

Just feeling like Lloyds isn't that great any more, especially as the free magazine has very limited options (all other options are useless for us).

It's horses for courses. Some people still like it for the mags or for the cinema tickets, others have ditched it years ago.

where_are_we

"I lothe paying for a bank account." I loathe paying for a bank account too but when I am getting £6.45 cashback on utility bills I am actually gaining £4.45 even though I pay a £2 Santander123 lite monthly fee.

RG2015

anotheruser said:

So people use savings accounts as current accounts?

I think the full fat 123 would have netted us about £60 for the year, the lite was perhaps a little less but I lothe paying for a bank account.  Banks started charging, people paid, so they carry that on, while not giving decent interest rates, depsite what the bank of England are doing.

Just feeling like Lloyds isn't that great any more, especially as the free magazine has very limited options (all other options are useless for us).

You loathe paying for a bank account. Why?

It has always fascinated me that people feel entitled to free banking.

Banks provide a high quality service. It actually costs money to run a bank account so someone has to pay for it. Presumably those that pay for loans, overdrafts and mortgages subsidise those of use who enjoy free banking.

I am happy to get a world class banking service for free. But I never take it for granted

B0bbyEwing

RG2015 said:

You loathe paying for a bank account. Why?

I'm going to take a wild guess before @anotheruser replies to you because I really feel the answer to that question should be totally obvious (though I could very well be wrong).

For me, why pay for something when there are so many free options of that same thing?

To which a pro payment person would say, yeah but this account that you pay for - they give you a shiny badge saying top customer if you join.
Point being who cares? A lot of people don't care for what they're offering as they just want free banking.

If there was a real reason to join, like paid banking gave you protection up to 100k vs whatever it is for banking as it stands then fair enough, that'd suit some people. 
But again, most people just want somewhere to put their money for free.

"feel entitled" - no, it's just that there's so many free options available so why pay when you don't need to? Seems like madness to me.

"it costs money to run a bank" - not my problem. All I want to know at the end of the day is where can I store my money without getting billed for it & until the day where that's no longer an option, that's what I'll be doing. I'm going to assume @anothersaver is the same?


But like subscription software. Loathe that myself. I don't want to rent some software. 
1 time payment is fine. I wont rent it though.

WillPS

RG2015 said:

anotheruser said:

So people use savings accounts as current accounts?

I think the full fat 123 would have netted us about £60 for the year, the lite was perhaps a little less but I lothe paying for a bank account.  Banks started charging, people paid, so they carry that on, while not giving decent interest rates, depsite what the bank of England are doing.

Just feeling like Lloyds isn't that great any more, especially as the free magazine has very limited options (all other options are useless for us).

You loathe paying for a bank account. Why?

It has always fascinated me that people feel entitled to free banking.

Banks provide a high quality service. It actually costs money to run a bank account so someone has to pay for it. Presumably those that pay for loans, overdrafts and mortgages subsidise those of use who enjoy free banking.

I am happy to get a world class banking service for free. But I never take it for granted

It's a Money Saving forum. Clue's in the title.

And people are entitled to fee free (basic) banking in the UK, subject to acceptance criteria.

Daliah

B0bbyEwing said:

For me, why pay for something when there are so many free options of that same thing?

To which a pro payment person would say, yeah but this account that you pay for - they give you a shiny badge saying top customer if you join.

Point is, though, that the Santander 123 is unique in that it pays cashback on DDs, and many people can make a net profit from the 123 Lite. There is no ‘same thing’ you would get for free elsewhere. 

RG2015

The point I am making is there is no such thing as free banking.

People who enjoy free banking, including myself, should be aware that other individuals are paying for it.

I am appreciative of this. Do I feel guilty that others are paying for my banking services? I am not sure, but I would not loathe having to pay bank charges. I am just grateful that I can enjoy a world class banking service without having to pay for it. 

Indeed the Santander 123 Lite account fee being discussed is more than offset by the cashback available for certain direct debits.

RG2015

WillPS said:

RG2015 said:

anotheruser said:

So people use savings accounts as current accounts?

I think the full fat 123 would have netted us about £60 for the year, the lite was perhaps a little less but I lothe paying for a bank account.  Banks started charging, people paid, so they carry that on, while not giving decent interest rates, depsite what the bank of England are doing.

Just feeling like Lloyds isn't that great any more, especially as the free magazine has very limited options (all other options are useless for us).

You loathe paying for a bank account. Why?

It has always fascinated me that people feel entitled to free banking.

Banks provide a high quality service. It actually costs money to run a bank account so someone has to pay for it. Presumably those that pay for loans, overdrafts and mortgages subsidise those of use who enjoy free banking.

I am happy to get a world class banking service for free. But I never take it for granted

It's a Money Saving forum. Clue's in the title.

And people are entitled to fee free (basic) banking in the UK, subject to acceptance criteria.

Yes, the entitlement to fee free basic banking is a good thing for those on low incomes. However, there is no reason why everyone should be entitled to free banking regardless of income or wealth.

B0bbyEwing

Daliah said:

Point is, though, that the Santander 123 is unique in that it pays cashback on DDs, and many people can make a net profit from the 123 Lite. There is no ‘same thing’ you would get for free elsewhere. 

Technically speaking you're paying, yes, but I'm sure you get the point. It's not like Halifax Ultimate Reward current account which has a hefty monthly price tag.
The Santander one, anyone with the usual direct debits can quite easily make a net profit so while yes you are paying, you're coming out better off. 
If I said to you give me £5, you wouldn't do it.
If I said to you, give me £5 & I'll give you £50, well, most people would do that.

RG2015 said:

People who enjoy free banking, including myself, should be aware that other individuals are paying for it.

Why "should" they?

I'll tell you here & now, I don't care & I'm quite sure I'm not alone. Maybe I might be on this forum but in the outside world I can 100% guarantee you I'm not alone & am probably in the majority, not minority - I don't care who is paying for it. At the end of the day I want free banking or profitable banking (even if you have to pay a bit to get a bit more back). So long as that's available then I'm taking it.

The day it ends and we all have to make a net loss for banking, I'll be doing it the cheapest way possible. 

WillPS

RG2015 said:

WillPS said:

RG2015 said:

anotheruser said:

So people use savings accounts as current accounts?

I think the full fat 123 would have netted us about £60 for the year, the lite was perhaps a little less but I lothe paying for a bank account.  Banks started charging, people paid, so they carry that on, while not giving decent interest rates, depsite what the bank of England are doing.

Just feeling like Lloyds isn't that great any more, especially as the free magazine has very limited options (all other options are useless for us).

You loathe paying for a bank account. Why?

It has always fascinated me that people feel entitled to free banking.

Banks provide a high quality service. It actually costs money to run a bank account so someone has to pay for it. Presumably those that pay for loans, overdrafts and mortgages subsidise those of use who enjoy free banking.

I am happy to get a world class banking service for free. But I never take it for granted

It's a Money Saving forum. Clue's in the title.

And people are entitled to fee free (basic) banking in the UK, subject to acceptance criteria.

Yes, the entitlement to fee free basic banking is a good thing for those on low incomes. However, there is no reason why everyone should be entitled to free banking regardless of income or wealth.

They are though. The reason people feel entitled to it is, in part, because they are.