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Santander 123 rises to 1.5%

Notepad_Phil
Posts: 1,519 Forumite

For anyone still using the full fat Santander 123 current account, it's now risen to 1.5%.
Hadn't heard anything about this until I logged in this morning and spotted the new rate.
Obviously there are better paying accounts out there, but it has its uses for people who e.g. use it as a hub to pay standing orders out to multiple regular saver accounts and have enough direct debits to pay the monthly fee.
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Notepad_Phil said:but it has its uses for people who e.g. use it as a hub to pay standing orders out to multiple regular saver accounts and have enough direct debits to pay the monthly fee.
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Don't forget it costs £4 a month.
This effectively reduces the interest rate to 1.26% on an account that is fully loaded with £20k all the time. That's a little over half of the currently best instant access rate. If you keep less in the account, the 123 interest rate is even worse.1 -
WillPS said:Notepad_Phil said:but it has its uses for people who e.g. use it as a hub to pay standing orders out to multiple regular saver accounts and have enough direct debits to pay the monthly fee.Depends on how many regular savers you have coming out of your account and how many months you want to leave it before you have to replenish the account - or can the linked saver do standing orders too?Daliah said:Don't forget it costs £4 a month.
This effectively reduces the interest rate to 1.26% on an account that is fully loaded with £20k all the time. That's a little over half of the currently best instant access rate. If you keep less in the account, the 123 interest rate is even worse.
Absolutely, so not good for everyone. But it makes sense for me, and may well do for others, but they must use it with their eyes wide open.0 -
Daliah said:Don't forget it costs £4 a month.
This effectively reduces the interest rate to 1.26% on an account that is fully loaded with £20k all the time. That's a little over half of the currently best instant access rate. If you keep less in the account, the 123 interest rate is even worse.
Just out of curiosity, why no one is talking about this?
EPICA - the best symphonic metal band in the world !0 -
Alex9384 said:Daliah said:Don't forget it costs £4 a month.
This effectively reduces the interest rate to 1.26% on an account that is fully loaded with £20k all the time. That's a little over half of the currently best instant access rate. If you keep less in the account, the 123 interest rate is even worse.
Just out of curiosity, why no one is talking about this?
I swapped my 123 full fat years ago for a 123 Lite, keep my savings with other providers, and transfer money as needed into the 123 Lite. It usually has a near zero balance most days, and it pays me a net £70ish a year. I would use the Barclays account as a pure savings account if they'd let me have one - but it seems they have banned me after I switched my remaining Barclays current account last month. They say I need an appointment in Branch to process an application - no chance, since there isn't even a Barclays Branch within 20 miles now.0 -
WillPS said:Notepad_Phil said:but it has its uses for people who e.g. use it as a hub to pay standing orders out to multiple regular saver accounts and have enough direct debits to pay the monthly fee.Considering how forgetful I am, I've had it before where accounts like Lloyds have charged me a management fee because I forgot to transfer money into there, or I've setup a SO and then forgot to fund the account it was coming out of.It's not perfect by any means, but loading the account with 20K and using it as a hub for all my DDs/SOs works for me, and it doesn't matter if I forget about it for a few months.0
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Astria said:
Considering how forgetful I am, I've had it before where accounts like Lloyds have charged me a management fee because I forgot to transfer money into there, or I've setup a SO and then forgot to fund the account it was coming out of.
I also have setup one of my accounts to have all the others displayed using open banking, so I can easily see if any account is overdrawn.
I certainly wouldn't keep 20k in santander, if you're that forgetful then enough for 2/3 months tops.
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Astria said:WillPS said:Notepad_Phil said:but it has its uses for people who e.g. use it as a hub to pay standing orders out to multiple regular saver accounts and have enough direct debits to pay the monthly fee.Considering how forgetful I am, I've had it before where accounts like Lloyds have charged me a management fee because I forgot to transfer money into there, or I've setup a SO and then forgot to fund the account it was coming out of.It's not perfect by any means, but loading the account with 20K and using it as a hub for all my DDs/SOs works for me, and it doesn't matter if I forget about it for a few months.Surely setting up a few SOs with a couple of days lee-way (so as to ensure weekend days/bank hols etc are allowed for, but making sure money makes as much as it can) would prevent such a thing?I personally do absolutely everything on the 1st of the month other than wait for any DDs to be paid (which go out around 3rd-5th); it involves a dozen or so transfers/faster payments and a handful of debit card transactions. It's quite therapeutic to know everything is set up and paid ready for the month ahead, and I've not yet missed the fact a new month has begun.0
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Daliah said:They say I need an appointment in Branch to process an application - no chance, since there isn't even a Barclays Branch within 20 miles now.It's very frustrating that Barclays are at the forefront of the branch cutbacks and yet have done very little to stop their processes from being reliant upon them.Feels like they're trying to have their cake and eat it.
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phillw said:
I certainly wouldn't keep 20k in santander, if you're that forgetful then enough for 2/3 months tops.
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