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  • FIRST POST
    • MSE Eesha
    • By MSE Eesha 30th Oct 17, 2:08 PM
    • 119Posts
    • 29Thanks
    MSE Eesha
    A year ago Santander 123 halved its interest to 1.5% now most should consider ditch
    • #1
    • 30th Oct 17, 2:08 PM
    A year ago Santander 123 halved its interest to 1.5% now most should consider ditch 30th Oct 17 at 2:08 PM
    This is the discussion to link on the back of Martin's blog. Please read the blog first, as this discussion follows it.





    Please click 'post reply' to discuss below.
Page 1
    • roddydogs
    • By roddydogs 30th Oct 17, 2:17 PM
    • 6,247 Posts
    • 2,671 Thanks
    roddydogs
    • #2
    • 30th Oct 17, 2:17 PM
    • #2
    • 30th Oct 17, 2:17 PM
    Wher else can you get more than 1.5% instant access, rubbish article mse!
    • Paul_DNAP
    • By Paul_DNAP 30th Oct 17, 2:48 PM
    • 551 Posts
    • 689 Thanks
    Paul_DNAP
    • #3
    • 30th Oct 17, 2:48 PM
    • #3
    • 30th Oct 17, 2:48 PM
    Wher else can you get more than 1.5% instant access, rubbish article mse!
    Originally posted by roddydogs

    The point is that if you pay your 5 fee out of the interest earned then the "effective rate" drops down to nearer 1.19% and not the headline 1.5%. And with the re-appearance of instant access savings at reasonable rates such as 1.3%, the Santander is looking very uncompetitive.
    • Neil Jones
    • By Neil Jones 30th Oct 17, 3:01 PM
    • 2,239 Posts
    • 1,579 Thanks
    Neil Jones
    • #4
    • 30th Oct 17, 3:01 PM
    • #4
    • 30th Oct 17, 3:01 PM
    It is not a "rubbish" article, 1.5% is BEFORE fee. After fee, closer to 1.2%.

    If you want a simple life for your savings and you get cashback, then for TL;DR purposes keep the core 123 account at the higher cost, otherwise I'd suggest Liteing it and shifting the excess to a 1.3% account.
    • RG2015
    • By RG2015 30th Oct 17, 4:12 PM
    • 1,642 Posts
    • 1,055 Thanks
    RG2015
    • #5
    • 30th Oct 17, 4:12 PM
    • #5
    • 30th Oct 17, 4:12 PM
    I have just calculated the benefit of downgrading to a 123 Lite account and transferring the 20,000 to a 1.30% easy access account is 10 per year.
    • michaels
    • By michaels 30th Oct 17, 4:34 PM
    • 22,528 Posts
    • 103,601 Thanks
    michaels
    • #6
    • 30th Oct 17, 4:34 PM
    • #6
    • 30th Oct 17, 4:34 PM
    There are other cashback on direct debit bank accounts, how do they compare to the Santander lite?
    Cool heads and compromise
    • d000hg
    • By d000hg 30th Oct 17, 8:08 PM
    • 128 Posts
    • 13 Thanks
    d000hg
    • #7
    • 30th Oct 17, 8:08 PM
    • #7
    • 30th Oct 17, 8:08 PM
    So what about for someone who has a large amount of cash in savings... 100-500k? I've inherited a large sum and can only get it into the ISA so fast. I realise this puts me in a minority but would still rather get the best deal I can.
    • MONEYTREE
    • By MONEYTREE 30th Oct 17, 8:16 PM
    • 146 Posts
    • 65 Thanks
    MONEYTREE
    • #8
    • 30th Oct 17, 8:16 PM
    • #8
    • 30th Oct 17, 8:16 PM
    Not worth the time involved, is it?
    I'm keeping my 123 for now.
    Cheers
    • dave_dph
    • By dave_dph 31st Oct 17, 2:17 PM
    • 537 Posts
    • 170 Thanks
    dave_dph
    • #9
    • 31st Oct 17, 2:17 PM
    • #9
    • 31st Oct 17, 2:17 PM
    Two weeks ago I converted my 123 account to the 123 Lite. I usually earn just over 4 per month in cash back. I've moved my 20,000 to instant access accounts paying 1.25% - 1.3%.

    It's not so long ago that I was up to my 85,000 limit with various Santander accounts, including a fixed rate ISA; they now have 20 of my money - apart from at the start of the month when my direct debits are due.

    When I called to convert the account the guy on the phone said that Santander were aware they'd be losing custom.
    • harz99
    • By harz99 31st Oct 17, 11:07 PM
    • 2,866 Posts
    • 2,816 Thanks
    harz99
    Wife and I have both switched our personal 123 accounts away to other banks current a/c's/fixed rate savings, retaining our joint 123 account where the cashback covers the fee+, and the joint account allows us both a regular saver at a decent rate.


    Probably stay that way for at least another year, if not longer.
    • NLO STARGAZER
    • By NLO STARGAZER 1st Nov 17, 11:39 AM
    • 1 Posts
    • 0 Thanks
    NLO STARGAZER
    Wouldn't you have thought that all businesses should have woken up to the fact that it's more cost-effective and financially viable to retain existing customers than to target new customers? Maybe this warning shot over Santander’s bows might bring them to their senses (probably wishful thinking).



    Myself and partner have 3 x 123 accounts (60K in total) and will be watching the market very closely. All these savings low interest rates are purely down to the huge sums of ultra-low-interest money readily available to the banks under the government’s (in collusion with the Bank of England) policy of quantitative easement, whereby the banks DON’T EVEN WANT OUR MONEY!

    In fact, it has been better to have been in debt for the last 10 years than to have been a prudent saver!
    • do163600
    • By do163600 1st Nov 17, 12:29 PM
    • 37 Posts
    • 33 Thanks
    do163600
    I think I'll be sitting tight, for now.

    My cashback just about covers the monthly fee and I keep 20k in the account. I also have the regular saver at 5%.

    I also have other Santander accounts, so it is useful to be able to transfer funds between them with ease.

    I've already maxed out my ISA allowance for the year, so no gain there.

    Hopefully Santander will see the light and raise their rate.
    • chelostar
    • By chelostar 1st Nov 17, 2:42 PM
    • 15 Posts
    • 1 Thanks
    chelostar
    Santander
    I'll stick for now, as nothing currently pays better interest for easy access, than Santander. I shall keep a close eye on the interest rates though. I also took advantage of Clydesdale/Yorkshire free 250. It all helps in this dire time. Thanks as always for the alerts Mr MSE
    • phillw
    • By phillw 2nd Nov 17, 6:40 AM
    • 2,367 Posts
    • 1,900 Thanks
    phillw
    I have just calculated the benefit of downgrading to a 123 Lite account and transferring the 20,000 to a 1.30% easy access account is 10 per year.
    Originally posted by RG2015
    If 10 is such a trifling amount for you, then please send paypal....

    Hopefully Santander will see the light and raise their rate.
    Originally posted by do163600
    I think the problem is that they have seen the light and borrowing at 1.5% from their customers is too high a price to pay for them. They aren't a charity & base rate will probably have to rise quite a bit before the situation changes.
    Last edited by phillw; 02-11-2017 at 6:44 AM.
    • RG2015
    • By RG2015 2nd Nov 17, 7:15 AM
    • 1,642 Posts
    • 1,055 Thanks
    RG2015
    If 10 is such a trifling amount for you, then please send paypal....
    Originally posted by phillw
    My aim was to state the facts and to introduce some perspective into the debate.

    However, now that you have raised the point I suspect that someone with 20,000 to spare may not be too concerned about losing 83 pence per month.
    • polyphonic99
    • By polyphonic99 2nd Nov 17, 5:56 PM
    • 52 Posts
    • 41 Thanks
    polyphonic99
    Totally Agree with Martin
    We had 3 Santander 123 Accounts with 20K per account. Basically we used them for easy access savings. We ditched the 2 individual accounts back in August 2017, transferred all cashback DDs to the joint account, which we kept, the cashback pays more than the 5 per month fee. The money that was in the 2 individual accounts, each of us moved it to 3 x Bank of Scotland Vantage current accounts paying 2% on 5K and 1 x Lloyds Current Account also paying 2% on 5K, none of which have a fee if you pay in the monthly amounts, which you just circulate between the accounts.

    Having the 4 BoS/LLoyds current accounts is a bit of a pain, but pays 2% on 20K each rather than the 1.5% less monthly fee (so 1.25%) from Santander. I very much doubt BoS/Lloyds will put up rates on current accounts after today's base rate rise, but we will probably stay with them until rates in normal saving accounts from other providers match them, when we will dump BoS/Lloyds and just go back to a hassle free simple savings account for our easy access money.
    • 23rdian
    • By 23rdian 2nd Nov 17, 7:18 PM
    • 90 Posts
    • 37 Thanks
    23rdian
    It might not be worth the 10 etc difference to move but remember this is a current account so if you were to switch it, it would be worth considerably more
    • ericcollinson
    • By ericcollinson 2nd Nov 17, 9:53 PM
    • 6 Posts
    • 2 Thanks
    ericcollinson
    disagree
    You can't discount the 5% saver account,access to this via the 123 is the main point.Drip feed 200 a month into the 5% saver from the 5000 example in the table above makes 64.33 in the year,and the reducing balance at 1.5% earns approx' 55.50.The 75 in your table turns into nearly 120 ! nearly 2.4%. A couple drip feeding 200 each from a 5000 joint account earn 128.66 + 36 from the reducing balance turning your 75 into approx' 165 ! nearly 3.3%. Your 10k,15k and 20k columns all increase considerably with the above reasoning.
    • RG2015
    • By RG2015 3rd Nov 17, 5:55 AM
    • 1,642 Posts
    • 1,055 Thanks
    RG2015
    You can't discount the 5% saver account,access to this via the 123 is the main point.Drip feed 200 a month into the 5% saver from the 5000 example in the table above makes 64.33 in the year,and the reducing balance at 1.5% earns approx' 55.50.The 75 in your table turns into nearly 120 ! nearly 2.4%. A couple drip feeding 200 each from a 5000 joint account earn 128.66 + 36 from the reducing balance turning your 75 into approx' 165 ! nearly 3.3%. Your 10k,15k and 20k columns all increase considerably with the above reasoning.
    Originally posted by ericcollinson
    The point though is that you qualify for the 5% Santander regular saver with the Santander Lite 123 account which is only 1 per month instead of 5 per month for the full 123 account.
    Last edited by RG2015; 03-11-2017 at 6:22 AM.
    • jflmutley
    • By jflmutley 3rd Nov 17, 8:52 AM
    • 3 Posts
    • 0 Thanks
    jflmutley
    customer service
    The numbers are interesting and useful but another major issue is quality of customer service and ease of access
    Santander is on all my local high streets so can talk directly to people (not websites)
    seems to be good customer service on telephones as well
    if things go wrong and they do this is as valuable as anything else out there so should also be looked at
    on balance santander ok for me but keep up these discussions the more we think about our actions the more we encourage companies to improve
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