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

surreysaver

Just received notification that Santander are reducing my 123 Lite arranged overdraft from £4k to £0, even though nothing in my financi life has changed.
Looks like Santander are serious trying to reduce their costs.
I always keep my Lite at £0 and replenish it when SOs/DDs are taken.  I'd rather not keep a positive balance in it earning 0%, so was wondering has anyone experience whether Santander are happy for their account to go into unarranged overdraft and have it replenished?
Otherwise I'll just be moving everything elsewhere (which is probably what Santander want anyway)

GeoffTF

surreysaver said:

Just received notification that Santander are reducing my 123 Lite arranged overdraft from £4k to £0, even though nothing in my financi life has changed.
Looks like Santander are serious trying to reduce their costs.
I always keep my Lite at £0 and replenish it when SOs/DDs are taken.  I'd rather not keep a positive balance in it earning 0%, so was wondering has anyone experience whether Santander are happy for their account to go into unarranged overdraft and have it replenished?
Otherwise I'll just be moving everything elsewhere (which is probably what Santander want anyway)

We are not getting reports of others having their overdraft limits cut to zero. It looks likely that Santander is not amused by the way in which you are using your account.

surreysaver

GeoffTF said:

surreysaver said:

Just received notification that Santander are reducing my 123 Lite arranged overdraft from £4k to £0, even though nothing in my financi life has changed.
Looks like Santander are serious trying to reduce their costs.
I always keep my Lite at £0 and replenish it when SOs/DDs are taken.  I'd rather not keep a positive balance in it earning 0%, so was wondering has anyone experience whether Santander are happy for their account to go into unarranged overdraft and have it replenished?
Otherwise I'll just be moving everything elsewhere (which is probably what Santander want anyway)

We are not getting reports of others having their overdraft limits cut to zero. It looks likely that Santander is not amused by the way in which you are using your account.

I've not changed the way I've used it in twenty years. Thanks for the accusation, but having literally only just received the notification (well, about two hours ago now), perhaps there'll be others as well.
If you have any insights on how they might not be amused, that might be useful?
It would seem to be Santander that have changed, rather than its customers 

gt94sss2

surreysaver said:

I always keep my Lite at £0 and replenish it when SOs/DDs are taken.  I'd rather not keep a positive balance in it earning 0%, so was wondering has anyone experience whether Santander are happy for their account to go into unarranged overdraft and have it replenished?

If your balance is zero, and you don't have an arranged overdraft, Santander will still honour any SO/DDs if you pay money in on the day they are due (before midday would be best) as they try to process the payments twice - once in the afternoon - if they don't pay it in the early hours..

friolento

surreysaver said:

Just received notification that Santander are reducing my 123 Lite arranged overdraft from £4k to £0, even though nothing in my financi life has changed.
Looks like Santander are serious trying to reduce their costs.
I always keep my Lite at £0 and replenish it when SOs/DDs are taken.  I'd rather not keep a positive balance in it earning 0%, so was wondering has anyone experience whether Santander are happy for their account to go into unarranged overdraft and have it replenished?
Otherwise I'll just be moving everything elsewhere (which is probably what Santander want anyway)

I use my 123 Lite in a similar way and have several £K arranged O/D. Never go overdrawn overnight but quite often intra-day. Haven’t had the O/D withdrawn (yet?). 

GeoffTF

surreysaver said:

GeoffTF said:

surreysaver said:

Just received notification that Santander are reducing my 123 Lite arranged overdraft from £4k to £0, even though nothing in my financi life has changed.
Looks like Santander are serious trying to reduce their costs.
I always keep my Lite at £0 and replenish it when SOs/DDs are taken.  I'd rather not keep a positive balance in it earning 0%, so was wondering has anyone experience whether Santander are happy for their account to go into unarranged overdraft and have it replenished?
Otherwise I'll just be moving everything elsewhere (which is probably what Santander want anyway)

We are not getting reports of others having their overdraft limits cut to zero. It looks likely that Santander is not amused by the way in which you are using your account.

I've not changed the way I've used it in twenty years. Thanks for the accusation, but having literally only just received the notification (well, about two hours ago now), perhaps there'll be others as well.
If you have any insights on how they might not be amused, that might be useful?

You have told us. You are getting the 123 cashback, but are not keeping a balance in your account. Santander is losing money on your account. I do not expect that they are pleased with that.

surreysaver

GeoffTF said:

surreysaver said:

GeoffTF said:

surreysaver said:

Just received notification that Santander are reducing my 123 Lite arranged overdraft from £4k to £0, even though nothing in my financi life has changed.
Looks like Santander are serious trying to reduce their costs.
I always keep my Lite at £0 and replenish it when SOs/DDs are taken.  I'd rather not keep a positive balance in it earning 0%, so was wondering has anyone experience whether Santander are happy for their account to go into unarranged overdraft and have it replenished?
Otherwise I'll just be moving everything elsewhere (which is probably what Santander want anyway)

We are not getting reports of others having their overdraft limits cut to zero. It looks likely that Santander is not amused by the way in which you are using your account.

I've not changed the way I've used it in twenty years. Thanks for the accusation, but having literally only just received the notification (well, about two hours ago now), perhaps there'll be others as well.
If you have any insights on how they might not be amused, that might be useful?

You have told us. You are getting the 123 cashback, but are not keeping a balance in your account. Santander is losing money on your account. I do not expect that they are pleased with that.

Only for another couple of months. My overdraft is withdrawn from 1st September, which coincides with when the changes occur. 
I wonder whether they're trying to push customers to either take the Edge Account, or to leave?
I have my (flexible offset) mortgage with Santander, also effectively at a £0 balance so am earning the cashback from that until the changes too. 
Maybe they don't like that I'm making a profit from them!

surreysaver

friolento said:

surreysaver said:

Just received notification that Santander are reducing my 123 Lite arranged overdraft from £4k to £0, even though nothing in my financi life has changed.
Looks like Santander are serious trying to reduce their costs.
I always keep my Lite at £0 and replenish it when SOs/DDs are taken.  I'd rather not keep a positive balance in it earning 0%, so was wondering has anyone experience whether Santander are happy for their account to go into unarranged overdraft and have it replenished?
Otherwise I'll just be moving everything elsewhere (which is probably what Santander want anyway)

I use my 123 Lite in a similar way and have several £K arranged O/D. Never go overdrawn overnight but quite often intra-day. Haven’t had the O/D withdrawn (yet?). 

Be interesting to see if it happens to others. Perhaps emails are sent out relative to people's statement periods.

GeoffTF

surreysaver said:

GeoffTF said:

surreysaver said:

GeoffTF said:

surreysaver said:

Just received notification that Santander are reducing my 123 Lite arranged overdraft from £4k to £0, even though nothing in my financi life has changed.
Looks like Santander are serious trying to reduce their costs.
I always keep my Lite at £0 and replenish it when SOs/DDs are taken.  I'd rather not keep a positive balance in it earning 0%, so was wondering has anyone experience whether Santander are happy for their account to go into unarranged overdraft and have it replenished?
Otherwise I'll just be moving everything elsewhere (which is probably what Santander want anyway)

We are not getting reports of others having their overdraft limits cut to zero. It looks likely that Santander is not amused by the way in which you are using your account.

I've not changed the way I've used it in twenty years. Thanks for the accusation, but having literally only just received the notification (well, about two hours ago now), perhaps there'll be others as well.
If you have any insights on how they might not be amused, that might be useful?

You have told us. You are getting the 123 cashback, but are not keeping a balance in your account. Santander is losing money on your account. I do not expect that they are pleased with that.

Only for another couple of months. My overdraft is withdrawn from 1st September, which coincides with when the changes occur. 
I wonder whether they're trying to push customers to either take the Edge Account, or to leave?
I have my (flexible offset) mortgage with Santander, also effectively at a £0 balance so am earning the cashback from that until the changes too. 
Maybe they don't like that I'm making a profit from them!

That was my thought. Perhaps they have been told to clamp down on the more unprofitable current accounts. Santander has announced the end of their "free for life" business accounts, and is getting rid of the 123 Lite accounts. Another possibility is that something untoward has appeared on one of your credit files. I would check them.

kev2009

brewerdave said:

kev2009 said:

Been looking at this and decided I'll just let mine move to the everyday account as its not going to be worth paying an account fee as the cashback has changed so I will get less cashback so not worth it for me.

Kev

Might as well use CASS to switch to a current account paying a signing on bonus then ? 

Thanks, will take a look at that and see, I have another account with them and also mot DDs go out so will see what options are.

I've had no issues with Santander over the years I've been with them , the cash back was nice but now it effectively cancels itself out due to reduction so might just stay with the free account. I only keep enough funds in the account to pay my bills. Also got other accounts where this account is my nominated account so may cause more problems if I move away.

Kev