Santander to slash 123 account interest and shake up overdrafts

I was at first disappointed to read about Santander's decision. However, I think I can now use it to my advantage, at least in the short term.
I suppose like many, I'm not the most proactive saver in the world. That said, I assiduously read investment tips given on Money Saving Expert, and in the last two years have taken out a 2 year account with Secure Trust Bank paying 2.27% and a 4 year account with Masthaven paying 2.37%. The spare money I have left I was relatively content to leave in the 1-2-3 account. Obviously, initially, I was not happy about the news of the interest rate drop. However, to offset this loss, I'm now looking to open an account with First Direct, which, if everything goes to plan, will net me the £100 offered as their free opening offer, plus access to their 2.75% saver account. The fact they do not charge a fee is also an attractive inducement, plus there does not appear to be a monthly pay in, although I will let the money in my 1-2-3 account dwindle so I can fund the First Direct saver account.
As I said at the start of this post, I hope to benefit in the short term and who knows what will be available next year or so.
I was looking at the 1-2-3 Lite account but since my DD's combined come to less than £5 a month, it's not really going to be relevant to my needs.

We currently have three 123 account and a big plus for us is the ability to draw fee free cash from Santander's ATMs in Spain. Which accounts would still allow us to do this? .....looking to close 2 & downgrade 1 account. We also have the Zero credit card which allows fee free cash but you pay interest immediately.

Wentthedaywell? wrote: »

Starling bank is excellent for no charges abroad. I opened it just to dump holiday money in, but it was so impressed I use it as my regular current account now.

Thanks, but we already use the mobile app N26 bank as our current account in Spain, also highly recommended. Just looking for the cheapest way to access our, soon to be downgraded, Santander account in Spain.
Anyone with a 123 lite, or standard Santander account used it on Santander ATMs in Spain? .... Is it still fee free?

whattochoose wrote: »

I was at first disappointed to read about Santander's decision. However, I think I can now use it to my advantage, at least in the short term.
I suppose like many, I'm not the most proactive saver in the world. That said, I assiduously read investment tips given on Money Saving Expert, and in the last two years have taken out a 2 year account with Secure Trust Bank paying 2.27% and a 4 year account with Masthaven paying 2.37%. The spare money I have left I was relatively content to leave in the 1-2-3 account. Obviously, initially, I was not happy about the news of the interest rate drop. However, to offset this loss, I'm now looking to open an account with First Direct, which, if everything goes to plan, will net me the £100 offered as their free opening offer, plus access to their 2.75% saver account. The fact they do not charge a fee is also an attractive inducement, plus there does not appear to be a monthly pay in, although I will let the money in my 1-2-3 account dwindle so I can fund the First Direct saver account.
As I said at the start of this post, I hope to benefit in the short term and who knows what will be available next year or so.
I was looking at the 1-2-3 Lite account but since my DD's combined come to less than £5 a month, it's not really going to be relevant to my needs.

It wasn't as easy as I thought. I rang First Direct. The upshot is I mistakenly (and no doubt naively) thought I could open a First Direct current account without fully realising I'd have to close my Santander account and transfer all my DD's and incomings to a newly opened First Direct account - that is if I expected to receive the £100 opening offer.
However, despite the reduced profitability that Santander will represent in a few months, at least it will give me some remuneration, so I'm not ready to completely ditch it yet.
The First Direct call centre told me what I could still do is open the account without them switching me from another account and I would still be eligible to put money into their saver account. They also told me at the years end when the saver account matures and interest is paid, you can then begin funding a new saver account.
I will most probably do this and it will in some part recompense me for the reduction in the Santander account.

Cash-back on household bills will be capped, meaning you can now only earn a maximum of £5 a month for each bills category.

At the moment, the account pays 3% on phone, broadband, mobile and TV bills, 2% on gas and electricity, Santander home insurance and life protection, and 1% on water and council tax, as long as you pay by direct debit.