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  • FIRST POST
    • MSE Eesha
    • By MSE Eesha 21st Sep 15, 4:02 PM
    • 119Posts
    • 29Thanks
    MSE Eesha
    Should I ditch Santander 123 due to the fee increase?
    • #1
    • 21st Sep 15, 4:02 PM
    Should I ditch Santander 123 due to the fee increase? 21st Sep 15 at 4:02 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
    • Cornucopia
    • By Cornucopia 21st Sep 15, 4:08 PM
    • 12,417 Posts
    • 14,110 Thanks
    Cornucopia
    • #2
    • 21st Sep 15, 4:08 PM
    • #2
    • 21st Sep 15, 4:08 PM
    I'm getting 404 from that link.
    I'm a Board Guide on the Phones & TV, Techie Stuff, In My Home,
    The Money Savers Arms and Food Shopping boards. I'm a volunteer to help the boards run smoothly, and I can move and merge threads there. Any views (especially those on the UK TV Licence) are mine and not the official line of moneysavingexpert.com.

    Board guides are not moderators. If you spot an inappropriate or illegal post then please report it to forumteam@moneysavingexpert.com
    • Bay
    • By Bay 21st Sep 15, 7:20 PM
    • 134 Posts
    • 102 Thanks
    Bay
    • #3
    • 21st Sep 15, 7:20 PM
    • #3
    • 21st Sep 15, 7:20 PM
    Worked fine for me - perhaps try again later or try a different browser.
  • jamesd
    • #4
    • 22nd Sep 15, 10:32 AM
    • #4
    • 22nd Sep 15, 10:32 AM
    There's more extensive discussion in the topic Santander 123 current account fees rising to 5 in January.

    It's also worth considering the potentially cheap overdraft facility. Mine's at about 4% if I was to use it all continuously but the bigger win for me is the 1 daily rate that makes it cheaper than fixed fee plus interest rate I get elsewhere. This makes it relatively cheap for me to do short term investing funded by the overdraft facility. I recently made about 70 from short term P2P trading for a cost of 7 in overdraft charge and expect to be able to repeat this at least a few times a year. Definitely not for everyone, but handy for some.
    • MSE Martin
    • By MSE Martin 22nd Sep 15, 1:10 PM
    • 8,116 Posts
    • 42,296 Thanks
    MSE Martin
    • #5
    • 22nd Sep 15, 1:10 PM
    • #5
    • 22nd Sep 15, 1:10 PM
    For overdraft Nationwide's overdraft 0% for a year then 50p a day smashes it, hence why I don't consider it an overdraft option
    Martin Lewis, Money Saving Expert.
    Please note, answers don't constitute financial advice, it is based on generalised journalistic research. Always ensure any decision is made with regards to your own individual circumstance.

    Don't miss out on urgent MoneySaving, get my weekly e-mail at www.moneysavingexpert.com/tips.

    Debt-Free Wannabee Official Nerd Club: (Honorary) Members number 000
    • Davlin
    • By Davlin 22nd Sep 15, 3:34 PM
    • 2 Posts
    • 0 Thanks
    Davlin
    • #6
    • 22nd Sep 15, 3:34 PM
    Strength in numbers.
    • #6
    • 22nd Sep 15, 3:34 PM
    Yes it is probably better not to ditch 123 but such massive fee increases should be challenged. Is it not possible with joint action to make Santander sit up,take notice and reconsider ? As a wrinkly I don't have the expertise to organize a mass protest but surely somebody out there does. Perhaps one of Martin's colleagues could?
  • jamesd
    • #7
    • 22nd Sep 15, 4:45 PM
    • #7
    • 22nd Sep 15, 4:45 PM
    For overdraft Nationwide's overdraft 0% for a year then 50p a day smashes it, hence why I don't consider it an overdraft option
    Originally posted by MSE Martin
    Thanks. Yes, it's not remotely close to the best overdraft deal.

    Just a feature that I'll use profitably in addition to the already profitable for me cashback.

    They have another advantage of a sort: they turn out to be no hassle for the sort of investment transactions I do that would cause FD to close my offset current account and change my offset interest only mortgage to non-offset if I was to do them there.

    For the moment, for me, spending credit searches on credit card BTs is a better use than a fifth current account. Might change sometime. If I could borrow 500k+ I would... so many great opportunities out there with decent risk levels, at least for me.
    • tgroom57
    • By tgroom57 23rd Sep 15, 10:28 AM
    • 1,358 Posts
    • 12,880 Thanks
    tgroom57
    • #8
    • 23rd Sep 15, 10:28 AM
    • #8
    • 23rd Sep 15, 10:28 AM
    I'm looking for somewhere to hold savings (5-10k) so I've read this carefully. I'll probably make half the 60 charge in cashback, and Santander 123 still looks to have the edge.

    Your comparison table had me puzzled at first- I don't pay tax, and the numbers seemed lower than my calculations.

    • the2ems
    • By the2ems 23rd Sep 15, 10:54 AM
    • 9 Posts
    • 2 Thanks
    the2ems
    • #9
    • 23rd Sep 15, 10:54 AM
    • #9
    • 23rd Sep 15, 10:54 AM
    Does anyone know if there is an exit fee for leaving Santander?
    Last edited by the2ems; 23-09-2015 at 10:55 AM. Reason: Forgot to request notification
    • matty_art
    • By matty_art 23rd Sep 15, 11:25 AM
    • 166 Posts
    • 42 Thanks
    matty_art
    Why doesn't this article take into account the other various current accounts that earn 3% or more e.g. TSB, BOS, Tesco? If you earn little to no cashback, all of these options are better than Santander and with a little swapping money around, you can save at least 11k in them. Use a couple of regular savers as well and Santander starts to look like only an option if you have well over 25k to save (as you'd need 10k in Santander to make it better than other accounts).
    • allybee13
    • By allybee13 23rd Sep 15, 11:25 AM
    • 38 Posts
    • 50 Thanks
    allybee13
    I'd hate to have the bills of the people making 500+ a year from this account.

    Using my average bills for calculations I'd make 66.50 and pay out 60.00 so I didn't bother changing my existing Santander current account as I pay my bills from Halifax and get 60 a year ... a profit of 53.50 against Santander's 6.50.

    I had considered keeping my Halifax account and transferring council tax, gas/electricity and phone/broadband to Santander to get the best of both worlds but for 6.50 a year it's not worth the hassle.

    Very disappointing move from Santander.
    Debt Free since Feb 2007
    • matty_art
    • By matty_art 23rd Sep 15, 11:26 AM
    • 166 Posts
    • 42 Thanks
    matty_art
    Does anyone know if there is an exit fee for leaving Santander?
    Originally posted by the2ems
    Wouldn't have thought so, it's just closing a current account
    • thrope
    • By thrope 23rd Sep 15, 7:12 PM
    • 31 Posts
    • 2 Thanks
    thrope
    I'm definitely closing mine.

    Torn between First Direct and TSB Plus for an alternative. TSB looks like it would pay more for me if I stay over a year, but First Direct has the much better service ratings.

    Does anyone know how the TSB online banking is?
    • badmanners
    • By badmanners 24th Sep 15, 5:14 PM
    • 10 Posts
    • 1 Thanks
    badmanners
    Was going to switch to santander, but not sure now. Doesn't bank of scotland give the same interest on 3x5k? Surprised to not see them listed as an option.
    • KingGooner
    • By KingGooner 24th Sep 15, 6:54 PM
    • 15 Posts
    • 2 Thanks
    KingGooner
    No Charge
    no charge - it is a current account so can leave at any time.
    • KingGooner
    • By KingGooner 24th Sep 15, 7:08 PM
    • 15 Posts
    • 2 Thanks
    KingGooner
    I got in at the beginning of the 123 promotion and have 4 accounts (we have two each) and I could probably go and get another joint one if possible.
    I will DEFINITELY NOT be leaving - I am just thankful the charge has taken so long to go up.
    I am hopeful that a lot of current members will leave so that Santander will put off any other raise in the future.

    It is true that the 123 account is probably best for those with at least 20,000 per account and I split my bills across all four so I probably won't make up the charge in the cash back but a I am receiving approx 200 a month in interest which will go up again in April - I am still quids in. Easily the highest interest and also the safest no risk investment with immediate access to funds ... what more can you ask?

    All the other banks that offer free current accounts with offers limit the amount to something not worth switching for. I had a spare 3,000 so opened a TSB account to get the 5% which I only get on the first 2k anyway. So I use whatever remains as my "spending money".

    I am on the 1st year of the Santander Credit Card so I don't pay a charge. I will probably cancel that in December (one months notice required!!) as I get a better cash back deal from Barclaycard.

    PS for those moaning about poor customer service - I received 4 letters in the post on the same day last week - one for each account.

    As a Gold customer (and now unemployed) I find the customer service terrific compared to when I was working and just had a salary going in. Best Bank around by far... increase in charges or not.
    Last edited by KingGooner; 24-09-2015 at 7:15 PM.
    • KingGooner
    • By KingGooner 24th Sep 15, 7:14 PM
    • 15 Posts
    • 2 Thanks
    KingGooner
    T.s.b.
    Does anyone know how the TSB online banking is?
    Originally posted by thrope
    TSB Online service is good. No access problems in the year I have been with them.
    They also have a phone app for Android (and I assume iPhone) that works properly as well.
    I have a free SMS on a weekly basis to remind me of my current balance and also inform me if at any time it falls below 2,000.

    Santander provides the above as well.
    • the2ems
    • By the2ems 24th Sep 15, 9:27 PM
    • 9 Posts
    • 2 Thanks
    the2ems
    I currently have a Virgin One account, and using online banking, I can split that account into smaller virtual accounts. So although all my money is in one account, I can create little accounts within that account, for different things, and easily transfer money between them. if you see what I mean. Does the 123 account have that facility?
    • thrope
    • By thrope 25th Sep 15, 7:59 AM
    • 31 Posts
    • 2 Thanks
    thrope
    I currently have a Virgin One account, and using online banking, I can split that account into smaller virtual accounts. So although all my money is in one account, I can create little accounts within that account, for different things, and easily transfer money between them. if you see what I mean. Does the 123 account have that facility?
    No the Santander 123 doesn't have that feature.
    • Stewart the tube driver
    • By Stewart the tube driver 25th Sep 15, 3:17 PM
    • 2 Posts
    • 2 Thanks
    Stewart the tube driver
    i hear rumours that Natwest is going to start a 3% cashback on household bills in a couple of weeks.
    And only a 3 pound fee pcm..

    Anybody else heard this??
    Will it force santander to drop it 5 increase to 3??

    Anybody??
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