Choice Current Account (Santander)

Superhoopza

Hi All,

Struggling with debts (another thread about that on the debt wannabe page). Some of which is an overdraft. Spoke to who I bank with, Santander and they have said I can switch over to another of their debit accounts with no impact on my direct debits, payroll i.e. account number etc. Only thing is the APR is 10% lower but also has a £30 monthly cap and no added charges. I am currently paying an overdraft fee averaging £70 a month. My overdraft is £3,000. If I was to use the cap it would bring the APR on the overdraft to 12% simple interest rate. (£30 x 12 = £360, £360/£3000 = 12%)

Whilst I combat my finances and target firstly the high sources of credit, is this a no brainer to move my account or am I missing a catch?

Comments that I shouldn't be using credit are valid but the circumstances are that if I can use cheaper credit to pay more expensive credit faster, then I will do so.

Thanks

WillPS

Which Santander current account do you currently hold (i.e. Basic, Everyday, 1|2|3, 1|2|3 Lite, Edge, Edge Up etc) and which are they offering to migrate your existing account to?

Is it worth considering shifting the debt to a cheaper form of borrowing (i.e. 0% credit card, which you pay off in the 0% term) and then keep your current account in the black?

Superhoopza

WillPS said:

Which Santander current account do you currently hold (i.e. Basic, Everyday, 1|2|3, 1|2|3 Lite, Edge, Edge Up etc) and which are they offering to migrate your existing account to?

Is it worth considering shifting the debt to a cheaper form of borrowing (i.e. 0% credit card, which you pay off in the 0% term) and then keep your current account in the black?

From an Everyday current account to Choice Current Account. 39.9% APR to 29.9% APR (but importantly with the cap).

Yeah I'd utilise 0% cards if I could, one for the future hopefully.

WillPS

If there really is no other choice of borrowing options open to you, potentially a loan even, then it makes sense - but please ensure you have exhausted all cheaper options first.

eskbanker

Superhoop91 said:

Spoke to who I bank with, Santander and they have said I can switch over to another of their debit accounts with no impact on my direct debits, payroll i.e. account number etc. Only thing is the APR is 10% lower but also has a £30 monthly cap and no added charges. I am currently paying an overdraft fee averaging £70 a month. My overdraft is £3,000. If I was to use the cap it would bring the APR on the overdraft to 12% simple interest rate. (£30 x 12 = £360, £360/£3000 = 12%)

Whilst I combat my finances and target firstly the high sources of credit, is this a no brainer to move my account or am I missing a catch?

Will they definitely continue to offer the same size of overdraft facility with the Choice account?

The overdraft fee cap is actually £20, but the account itself has a £10 monthly charge, so while overdrawn that obviously equates to the same as £30/month, but once back in credit you'd still pay the £10 if you retained the account.

https://www.santander.co.uk/assets/s3fs-public/documents/choice_current_account_key_facts_document_mar21h.pdf

Edit: that version of the document is out of date, the current one is linked below

Superhoopza

eskbanker said:

Superhoop91 said:

Spoke to who I bank with, Santander and they have said I can switch over to another of their debit accounts with no impact on my direct debits, payroll i.e. account number etc. Only thing is the APR is 10% lower but also has a £30 monthly cap and no added charges. I am currently paying an overdraft fee averaging £70 a month. My overdraft is £3,000. If I was to use the cap it would bring the APR on the overdraft to 12% simple interest rate. (£30 x 12 = £360, £360/£3000 = 12%)

Whilst I combat my finances and target firstly the high sources of credit, is this a no brainer to move my account or am I missing a catch?

Will they definitely continue to offer the same size of overdraft facility with the Choice account?

The overdraft fee cap is actually £20, but the account itself has a £10 monthly charge, so while overdrawn that obviously equates to the same as £30/month, but once back in credit you'd still pay the £10 if you retained the account.

https://www.santander.co.uk/assets/s3fs-public/documents/choice_current_account_key_facts_document_mar21h.pdf

Yes, no change in overdraft, no credit search etc as I'm just switching within the same company. Live chat confirmed that today.

It's probably best to use the most up to date information when advising people. I.e. here:

fee_information_document_bank0639apr23hlr.pdf (santander.co.uk)

There is no monthly charge to use the account

eskbanker

Superhoop91 said:

It's probably best to use the most up to date information when advising people. I.e. here:

fee_information_document_bank0639apr23hlr.pdf (santander.co.uk)

There is no monthly charge to use the account

Fair enough - the product doesn't show in Santander's current account listings so I just googled 'santander choice' and the first result was the one I shared, but yes, as well as the fee information one you've linked there, the key facts one I posted has also been updated:

https://www.santander.co.uk/assets/s3fs-public/AD_documents/choice_current_account_key_facts_document_bank0545_aug23_hcd.pdf

Superhoopza

Anyone else see a reason not to switch? if I can save £40 a month roughly whilst trying to reduce my overall balances, then seems like it should be done?

Superhoopza

Any other opinions? No one throwing me off the idea so think I'll do it

Superhoopza

I've applied for the switch of accounts. It says it takes up to two working days so I'll await news on whether it was successful.

Superhoopza

All switched over, took less than 24 hours.