Santander 123 Lite - conversion to Everyday Account from 21 August 2025?

Olenna

EssexHebridean said:

The worldwide ATM network isn’t an important consideration for us. You’re right about the app not accept cheque deposits but fir the maybe once a year I need to pay in a cheque I can do it via my First Direct account and then transfer - not a big deal.


A lot of the preferences around banking are going to come down to lifestyle - so if yours relies on overseas cash withdrawals and thr ability to easily pay in cheques (and you don’t have a secondary account which lets you do that online) then sure, the Flexdirect probably wouldn’t be great for you. For us though, it will work just fine, and leaves us earning at least some interest on the money that is in the account through the month for bill paying etc. 

Of course lifestyle does have a bearing as does location.  

I also personally don't rate the FlexDirect after the first year as it drops to 1% on up to 1.5k which is pretty rubbish. I retain my FlexAccount for the £100/£150 per year but their lack of Post Office access along with the no app deposits is subpar IMO and rules them out as a main current account. The free overseas ATMs are a useful cherry on top for Santander. 

WillPS

Olenna said:

I also personally don't rate the FlexDirect after the first year as it drops to 1% on up to 1.5k which is pretty rubbish. 

Santander's Everyday and Edge* accounts have no interest at all. Only Edge Up offers better interest but you have to pay a £5/month fee for the privilege. (*ignoring the linked saver, since it's no different from having a separate savings account)

1% is paltry but it's also pretty much as good as it gets for fee-free current account balance interest. The only superior options are from fintech players.

crumpet_man

Chase savings account for direct debits is worth a look, upto 5% interest (?) for new customers/boosted rates etc.

friolento

WillPS said:

Olenna said:

I also personally don't rate the FlexDirect after the first year as it drops to 1% on up to 1.5k which is pretty rubbish. 

Santander's Everyday and Edge* accounts have no interest at all. Only Edge Up offers better interest but you have to pay a £5/month fee for the privilege. (*ignoring the linked saver, since it's no different from having a separate savings account)

1% is paltry but it's also pretty much as good as it gets for fee-free current account balance interest. The only superior options are from fintech players.

I keep my spare “current” cash in an instant access savings account, currently Chip. Cahoot and Chase would also be options for me at this stage. My Santander current account usually has a balance of less than £1, and I top it up on an as-needed basis. I also have a large O/D on my current account, to ensure none of the DDs/SOs can bounce. If the account goes into an overdraft, Santander send me a text before 9 am and I have until 8pm top it up. I am not likely to get attracted by a 1% account any time soon 

WillPS

friolento said:

WillPS said:

Olenna said:

I also personally don't rate the FlexDirect after the first year as it drops to 1% on up to 1.5k which is pretty rubbish. 

Santander's Everyday and Edge* accounts have no interest at all. Only Edge Up offers better interest but you have to pay a £5/month fee for the privilege. (*ignoring the linked saver, since it's no different from having a separate savings account)

1% is paltry but it's also pretty much as good as it gets for fee-free current account balance interest. The only superior options are from fintech players.

I keep my spare “current” cash in an instant access savings account, currently Chip. Cahoot and Chase would also be options for me at this stage. My Santander current account usually has a balance of less than £1, and I top it up on an as-needed basis. I also have a large O/D on my current account, to ensure none of the DDs/SOs can bounce. If the account goes into an overdraft, Santander send me a text before 9 am and I have until 8pm top it up. I am not likely to get attracted by a 1% account any time soon 

It's clearly not the optimal option but if you want interest on a current account with no fee thems the breaks.

I don't keep any money in current accounts either, FWIW, but like most on here I'm a bit more willing than most to jump through hoops and squeeze every last penny. It's unrealistic to expect the public en masse to optimise their finances, and there'd probably be less arbitrage possible if they did!

friolento

WillPS said:

friolento said:

WillPS said:

Olenna said:

I also personally don't rate the FlexDirect after the first year as it drops to 1% on up to 1.5k which is pretty rubbish. 

Santander's Everyday and Edge* accounts have no interest at all. Only Edge Up offers better interest but you have to pay a £5/month fee for the privilege. (*ignoring the linked saver, since it's no different from having a separate savings account)

1% is paltry but it's also pretty much as good as it gets for fee-free current account balance interest. The only superior options are from fintech players.

I keep my spare “current” cash in an instant access savings account, currently Chip. Cahoot and Chase would also be options for me at this stage. My Santander current account usually has a balance of less than £1, and I top it up on an as-needed basis. I also have a large O/D on my current account, to ensure none of the DDs/SOs can bounce. If the account goes into an overdraft, Santander send me a text before 9 am and I have until 8pm top it up. I am not likely to get attracted by a 1% account any time soon 

It's clearly not the optimal option but if you want interest on a current account with no fee thems the breaks.

It might be an option for some, or even for the majority of the public, but I consider 1%, and even more so 0%, an insult when the base rate stands at 4.25%

IanManc

friolento said:

WillPS said:

friolento said:

WillPS said:

Olenna said:

I also personally don't rate the FlexDirect after the first year as it drops to 1% on up to 1.5k which is pretty rubbish. 

Santander's Everyday and Edge* accounts have no interest at all. Only Edge Up offers better interest but you have to pay a £5/month fee for the privilege. (*ignoring the linked saver, since it's no different from having a separate savings account)

1% is paltry but it's also pretty much as good as it gets for fee-free current account balance interest. The only superior options are from fintech players.

I keep my spare “current” cash in an instant access savings account, currently Chip. Cahoot and Chase would also be options for me at this stage. My Santander current account usually has a balance of less than £1, and I top it up on an as-needed basis. I also have a large O/D on my current account, to ensure none of the DDs/SOs can bounce. If the account goes into an overdraft, Santander send me a text before 9 am and I have until 8pm top it up. I am not likely to get attracted by a 1% account any time soon 

It's clearly not the optimal option but if you want interest on a current account with no fee thems the breaks.

It might be an option for some, or even for the majority of the public, but I consider 1%, and even more so 0%, an insult when the base rate stands at 4.25%

So long as banks are still prepared to offer me completely free current account banking then to be honest I'm prepared to be insulted.

friolento

IanManc said:

friolento said:

WillPS said:

friolento said:

WillPS said:

Olenna said:

I also personally don't rate the FlexDirect after the first year as it drops to 1% on up to 1.5k which is pretty rubbish. 

Santander's Everyday and Edge* accounts have no interest at all. Only Edge Up offers better interest but you have to pay a £5/month fee for the privilege. (*ignoring the linked saver, since it's no different from having a separate savings account)

1% is paltry but it's also pretty much as good as it gets for fee-free current account balance interest. The only superior options are from fintech players.

I keep my spare “current” cash in an instant access savings account, currently Chip. Cahoot and Chase would also be options for me at this stage. My Santander current account usually has a balance of less than £1, and I top it up on an as-needed basis. I also have a large O/D on my current account, to ensure none of the DDs/SOs can bounce. If the account goes into an overdraft, Santander send me a text before 9 am and I have until 8pm top it up. I am not likely to get attracted by a 1% account any time soon 

It's clearly not the optimal option but if you want interest on a current account with no fee thems the breaks.

It might be an option for some, or even for the majority of the public, but I consider 1%, and even more so 0%, an insult when the base rate stands at 4.25%

So long as banks are still prepared to offer me completely free current account banking then to be honest I'm prepared to be insulted.

I get the full use if the free accounts without having to pay for them by foregoing market leading interest rates 😎

WillPS

friolento said:

IanManc said:

friolento said:

WillPS said:

friolento said:

WillPS said:

Olenna said:

I also personally don't rate the FlexDirect after the first year as it drops to 1% on up to 1.5k which is pretty rubbish. 

Santander's Everyday and Edge* accounts have no interest at all. Only Edge Up offers better interest but you have to pay a £5/month fee for the privilege. (*ignoring the linked saver, since it's no different from having a separate savings account)

1% is paltry but it's also pretty much as good as it gets for fee-free current account balance interest. The only superior options are from fintech players.

I keep my spare “current” cash in an instant access savings account, currently Chip. Cahoot and Chase would also be options for me at this stage. My Santander current account usually has a balance of less than £1, and I top it up on an as-needed basis. I also have a large O/D on my current account, to ensure none of the DDs/SOs can bounce. If the account goes into an overdraft, Santander send me a text before 9 am and I have until 8pm top it up. I am not likely to get attracted by a 1% account any time soon 

It's clearly not the optimal option but if you want interest on a current account with no fee thems the breaks.

It might be an option for some, or even for the majority of the public, but I consider 1%, and even more so 0%, an insult when the base rate stands at 4.25%

So long as banks are still prepared to offer me completely free current account banking then to be honest I'm prepared to be insulted.

I get the full use if the free accounts without having to pay for them by foregoing market leading interest rates 😎

That's good, and that's the optimal route - but for the masses who leave too much/everything in a current account they're better earning something than nothing. Again, I'm not trying to convince you that you should do this, you definitely shouldn't.

Important to remember that the membership of this forum will skew disproportionately toward financially motivated compared to the public in general. 

EssexHebridean

WillPS said:

Olenna said:

I also personally don't rate the FlexDirect after the first year as it drops to 1% on up to 1.5k which is pretty rubbish. 

Santander's Everyday and Edge* accounts have no interest at all. Only Edge Up offers better interest but you have to pay a £5/month fee for the privilege. (*ignoring the linked saver, since it's no different from having a separate savings account)

1% is paltry but it's also pretty much as good as it gets for fee-free current account balance interest. The only superior options are from fintech players.

This! Allowing that the money is going to be sitting there anyway, I'd rather it was earning "something" quite frankly. In an ideal world then we'd have just what was needed for the next few days payments in the current account and hold everything else in a decent easy access, but in the real world that's just more labour intensive than our lifestyles allow - kudos to those who have the time, but it's not for us - or indeed for the vast majority of folk I suspect. There is no accumulation of funds in there - surplus gets reallocated at the end of the month, but the account is going to be in credit for the month, so might as well earn its keep!

friolento said:

WillPS said:

friolento said:

WillPS said:

Olenna said:

I also personally don't rate the FlexDirect after the first year as it drops to 1% on up to 1.5k which is pretty rubbish. 

Santander's Everyday and Edge* accounts have no interest at all. Only Edge Up offers better interest but you have to pay a £5/month fee for the privilege. (*ignoring the linked saver, since it's no different from having a separate savings account)

1% is paltry but it's also pretty much as good as it gets for fee-free current account balance interest. The only superior options are from fintech players.

I keep my spare “current” cash in an instant access savings account, currently Chip. Cahoot and Chase would also be options for me at this stage. My Santander current account usually has a balance of less than £1, and I top it up on an as-needed basis. I also have a large O/D on my current account, to ensure none of the DDs/SOs can bounce. If the account goes into an overdraft, Santander send me a text before 9 am and I have until 8pm top it up. I am not likely to get attracted by a 1% account any time soon 

It's clearly not the optimal option but if you want interest on a current account with no fee thems the breaks.

It might be an option for some, or even for the majority of the public, but I consider 1%, and even more so 0%, an insult when the base rate stands at 4.25%

For savings, absolutely. But we're not talking about savings here, we're talking about current accounts. 1% in a current account is better than probably 95% of the population are getting!