Santander 123 account fee increasing to £5 from January

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Comments

  • Kernel_Sanders
    Kernel_Sanders Posts: 3,617 Forumite
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    edited 14 September 2015 at 1:53AM
    It's still a good deal if you have several thousand but for many, they'll be paying tax on £x of interest but receiving a smaller amount.
    The article unfairly accuses Santander of being underhand with the cashback yet customers can leave without penalty. It also falsely states that Santander are switching from an annual to a monthly fee.
  • roddydogs
    roddydogs Posts: 7,478 Forumite
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    ? 2 threads?
  • Sea_Shell
    Sea_Shell Posts: 9,369 Forumite
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    More great news....not!!!

    So full £20k would've been getting 3% gross = £600 pa, less £24 = 576 = 2.88%
    now £20k would get £600 less £60 = 2.7%

    I guess in the current climate 2.7% is still pretty good, and better than can be had elsewhere.

    However, its not such a great deal if the account is used as a 'normal' current account without a large balance sitting there.

    Just looked at our cashback for this month...and it only came to £4.69, so not even enough to cover the new fee. (as we've been MSE and screwed down all our household bills!!)

    Oh well.
    How's it going, AKA, Nutwatch? - 12 month spends to date = 2.31% of current retirement "pot" (as at end March 2024)
  • 20aday
    20aday Posts: 2,610 Forumite
    First Anniversary Combo Breaker First Post PPI Party Pooper
    Thank you for the link; the Santander 123 MasterCard is increasing the card's Annual Fee from £24 to £36!

    I guess that means they'll carry on paying 1/2/3% on qualifying spend that's not a bad thing but you'd have to spend quite a bit to make the card worthwhile.
    It's not your credit score that counts, it's your credit history. Any replies are my own personal opinion and not a representation of my employer.
  • Harveys_2
    Harveys_2 Posts: 217 Forumite
    Sea_Shell wrote: »
    More great news....not!!!

    So full £20k would've been getting 3% gross = £600 pa, less £24 = 576 = 2.88%
    now £20k would get £600 less £60 = 2.7%

    I guess in the current climate 2.7% is still pretty good, and better than can be had elsewhere.

    However, its not such a great deal if the account is used as a 'normal' current account without a large balance sitting there.

    Just looked at our cashback for this month...and it only came to £4.69, so not even enough to cover the new fee. (as we've been MSE and screwed down all our household bills!!)

    Oh well.

    From April next year interest will be most tax free. So rather than
    50-10-2=38
    50-5=45

    So 7quid better off
  • colsten
    colsten Posts: 17,597 Forumite
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    roddydogs wrote: »
    ? 2 threads?
    This one existed first, and it is also on the right board. The 123 is a current account, not a savings account, even if lots of people use it for the interest.
  • colsten
    colsten Posts: 17,597 Forumite
    First Anniversary Photogenic Name Dropper First Post
    Sea_Shell wrote: »
    So full £20k would've been getting 3% gross = £600 pa, less £24 = 576 = 2.88%
    now £20k would get £600 less £60 = 2.7%

    To calculate interest, you need to use the gross rate as published by Santander, not the AER. The gross rate is 2.96% before tax. Only a minor difference but it is good to understand how interest gets calculated.
  • Yorkshire_Pud
    Yorkshire_Pud Posts: 1,857 Forumite
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    edited 14 September 2015 at 11:18AM
    With interest 'tax free' from april 2016 I expect all the banks and building societies to take their unearned 'share' of the supposed extra 20% uplift in 'our' savings interest.

    Increased bank charges, account fees and savings interest failing to rise when base rate does. Maybe rates even falling more when BOE base rate rises.

    Its the usual Tory shafting of hard working savers creating policies that seem good in principle but in fact benefit institutions more than the rank and file. Toss the plebs a few crumbs and they will be happy while we walk away with the gold.
  • CLAPTON
    CLAPTON Posts: 41,865 Forumite
    Combo Breaker First Post
    Yorkshire_Pud wrote: »
    With interest 'tax free' from april 2016 I expect all the banks and building societies to take their unearned 'share' of the supposed extra 20% uplift in 'our' savings interest.

    Increased bank charges, account fees and savings interest failing to rise when base rate does. Maybe rates even falling more when BOE base rate rises.

    Its the usual Tory shafting of hard working savers creating policies that seem good in principle but in fact benefit institutions more than the rank and file. Toss the plebs a few crumbs and they will be happy while we walk away with the gold.

    it would seem to be socialist EU new rules that have caused the increase in fees but never let the facts get in the way of a good story.
  • Space_Captain
    Space_Captain Posts: 167 Forumite
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    Have Santander Retailer Offers finished ? When I log on I no longer see a link to shops and restaurants that offer cashback.

    Even if there weren't any current offers I thought I could view my previous offers.
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