Santander 123 account fee increasing to £5 from January
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Is this a joint 1-2-3 account? It's unclear as you talk of both "I" and "we".greensalad wrote: »We were earning £7 a month or so but with the new fee it's really not worth it. I'm considering moving to Halifax who are now offering £5 p/m you stay in credit (we always are) and £125 switching bonus. Or I'm sure there will be other deals similar in January...
Of course any "rule" will be clearly explained in the product T&Cs, but since you've already had the cashback, rather than waiting for year-end, what do you think?My question is, is there any repercussions of pulling out of this account regarding our cashback? I.e is there any rule regarding keeping the account for a certain amount of time? If we switch and haven't had the account for a year, is there a penalty to our current earnings?0 -
after the news i've re-evaluated the situation with my own and joint current accounts with santander plus another i have.
looks like i'm moving. there's a potential £400 extra in bonuses and extra interest to be made.
well done santander! it was the prompt i needed.0 -
I've just read that Tesco Bank are to scrap their £5 per month charge from tomorrow for new and existing customers, no doubt trying to attract Santander customers who can only keep up to £3,000 per month in their account (Tesco pay 3% up to £3,000). Let the exodus commence.0
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Cash-back is paid at the end of each statement month and once you've got it, it's yours to keep. The are no repercussions if you move your account except that in the final month, a DD may be paid before the move but no cash-back will be received. You may have to pay a proportion of the monthly fee.greensalad wrote: ». . . My question is, is there any repercussions of pulling out of this account regarding our cashback? I.e is there any rule regarding keeping the account for a certain amount of time? If we switch and haven't had the account for a year, is there a penalty to our current earnings?
Warning: In the kingdom of the blind, the one-eyed man is king.
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I've just read that Tesco Bank are to scrap their £5 per month charge from tomorrow for new and existing customers, no doubt trying to attract Santander customers who can only keep up to £3,000 per month in their account (Tesco pay 3% up to £3,000). Let the exodus commence.
I agree that it's an open invitation from Tesco to 123 account holders but despite Tesco's announcement, that's really nothing new. The monthly charge at Tesco could always be very easily avoided. I have had 2 Tesco current accounts for 14 months and never had to pay a penny for having them, and I am sure there's hundreds if not thousands of others who also never needed to pay.
People who have max £3,000 in their current accounts / savings should probably never have had a 123. 2 TSB Plus accounts for those who can/could get them would be the best in terms of interest, 1 TSB Plus and 1 Tesco is the second best option for them. 2 current accounts at different financial institutions is also smart in terms of having access to money if one of the accounts has a problem.
I have been telling people for ages that the 123 shouldn't be the first account most (not all) people in search of interest should be flocking to, as there are accounts out there that pay better interest. As it stands right now, you can get better than the current 123 deal for £28,000 in other sole current accounts, more if you also can do joint accounts. Tesco and TSB are the simplest ones to run, BOS and Club Lloyds take a bit more planning and effort but nothing out of the ordinary.0 -
I've just read that Tesco Bank are to scrap their £5 per month charge from tomorrow for new and existing customers, no doubt trying to attract Santander customers who can only keep up to £3,000 per month in their account (Tesco pay 3% up to £3,000). Let the exodus commence.
Where did you see this information about scrapping the £5 per month charge ??
A link would be nice if possible.0 -
http://forums.moneysavingexpert.com/showthread.php?t=5324668firefox1956 wrote: »Where did you see this information about scrapping the £5 per month charge ??
A link would be nice if possible.0 -
Archi_Bald wrote: »
Thanks for the link......maybe Tesco will update their website tomorrow !!!!
Close call for me though was just about to open another 123 account.
Thank you MSE............0 -
I've just paid the Yearly Fee on my 123 CC. Does that cover me until next year now? If I left before my fee was due would Santander add up the months I'd still have the card and charge me an appropriate fee?0
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Inevitable that they couldn't offer this loss leader for ever. I'm currently borrowing money from Santander at 2.5% (lifetime tracker mortgage) and lending it back to them at 3% (123 current account). Clearly not profitable for them.
My cashback on utility bills averages around £5.70 a month, which will cover the new fee and leave me with a small profit. The £7 a month cashback on my mortgage continues to make the 123 account very attractive to me, even if I don't use it as a savings account.
On the credit card, I've had £120 regular cashback and a further £36 "my offers" cashback in the last year, on a spend of £8250. If "my offers" continue the way they have, they should cover the monthly fee and leave me with a cashback rate of close to 1.5%, so I'll be keeping the credit card as well.0
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