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  • FIRST POST
    • hubb
    • By hubb 8th Oct 18, 4:16 PM
    • 1,984Posts
    • 378Thanks
    hubb
    Santander 123 still best savings account ?
    • #1
    • 8th Oct 18, 4:16 PM
    Santander 123 still best savings account ? 8th Oct 18 at 4:16 PM
    I have been with Santander 123 savings account for 3 years and earned some decent interest. I have monthly outgoings and earn cashback from those payments on top of my normal interest. Their rate is 1.5% interest.

    I see in the top here shows Marcus as the best option, also with 1.5% BUT they don't seem to offer cashback on payments made. Am I missing something of is the Santander 123 still the best offer at the moment ?
Page 3
    • tg99
    • By tg99 9th Oct 18, 8:11 PM
    • 736 Posts
    • 286 Thanks
    tg99
    Why do you need £40k instant access?
    You can get 1.6% for 6 months fixed or 2% 1 year fixed.
    Accross Tsb/tesco/nationwide ive got £10k paying average 3.8%
    Originally posted by Zero Sum
    I have various sizeable outgoings each month eg loads of Reg savers plus into shares/funds etc which I also like to be able to do opportunistically which cannot do if money is tied up in fixed accounts. I already have all the current accounts paying good interest like Tesco, TSB etc.
    • hubb
    • By hubb 9th Oct 18, 8:22 PM
    • 1,984 Posts
    • 378 Thanks
    hubb
    I have various sizeable outgoings each month eg loads of Reg savers plus into shares/funds etc which I also like to be able to do opportunistically which cannot do if money is tied up in fixed accounts. I already have all the current accounts paying good interest like Tesco, TSB etc.
    Originally posted by tg99
    Sounds like you are loaded
    • No_6
    • By No_6 9th Oct 18, 9:12 PM
    • 817 Posts
    • 161 Thanks
    No_6
    IF !!!
    you all ready have ALL the accounts paying....
    the TOP rates....
    then why would anyone close a Santander
    account for 1.5% on £20k
    • Zero Sum
    • By Zero Sum 9th Oct 18, 9:20 PM
    • 956 Posts
    • 737 Thanks
    Zero Sum
    IF !!!
    you all ready have ALL the accounts paying....
    the TOP rates....
    then why would anyone close a Santander
    account for 1.5% on £20k
    Originally posted by No_6
    Because youre not getting 1.5%
    You're getting 1.26% infact if you have 2, then the 2nd is only paying 1.2%
    • soulsaver
    • By soulsaver 10th Oct 18, 12:11 AM
    • 2,355 Posts
    • 1,146 Thanks
    soulsaver
    I’ve got two 123 accounts each with £20k, one of which is used as my main banking hub for everything and the second purely for savings.

    Only thing making me think twice about closing the second one is the terms and conditions preventing customers from having more than one (I opened the second one not long before they introduced this restriction).

    If Santander react to the rate increases elsewhere by increasing the rate from 1.5% or cutting the £5pm fee then in theory I would not be able to open a second one again (presuming they actually adhere to the restriction though!).

    Not convinced this is terribly likely however, at least until rates get high enough that there is a more significant difference between the effective net rate from Santander and that earned from the best paying easy access accounts.

    And even then it’s questionable whether they would act unless they had significant numbers of customers leaving.

    I could wait until say early in 2019 and if nothing has changed then remove the second account at that point.

    Then again I think I might just get on with doing it now as even if say Santander scrapped the £5 fee entirely (unlikely) then the 1.5% is still no better than Marcus and Bank of Cyprus.
    Originally posted by tg99
    If you make the account 123 lite you can reverse it back to full fat.

    I have several 123s recently Lited just in case..
    Last edited by soulsaver; 10-10-2018 at 12:12 AM. Reason: I've put some spacing in so its easier to read..Hope its OK.
    • tg99
    • By tg99 10th Oct 18, 1:46 AM
    • 736 Posts
    • 286 Thanks
    tg99
    If you make the account 123 lite you can reverse it back to full fat.

    I have several 123s recently Lited just in case..
    Originally posted by soulsaver
    And thatís without paying the £1pm fee since youíre not using the account for DD, cashback etc? How did you find out that you are able to reverse it back to full fat (assuming you mean you can reverse it even if you already have the one permitted existing full fat account)? Thanks.
    • soulsaver
    • By soulsaver 10th Oct 18, 1:07 PM
    • 2,355 Posts
    • 1,146 Thanks
    soulsaver
    And that’s without paying the £1pm fee since you’re not using the account for DD, cashback etc? How did you find out that you are able to reverse it back to full fat (assuming you mean you can reverse it even if you already have the one permitted existing full fat account)? Thanks.
    Originally posted by tg99
    Phoned & asked their CS.. Went through security - she could see all my 123 accounts...

    I would think there are quite a few MSEers that have/had more than 2; it was legal to have as many as you like some years ago - and AFAIK they've never insisted any were closed.
    Last edited by soulsaver; 10-10-2018 at 1:10 PM.
    • tg99
    • By tg99 10th Oct 18, 6:10 PM
    • 736 Posts
    • 286 Thanks
    tg99
    From what I can see for 123 Lite, you only start getting charged the monthly fee once you start receiving cashback though subsequently you still pay the fee in months when no cashback is received. Hence as I think someone else has stated in a different thread (can’t find now), as long as you don’t activate cashback then esssentially 123 Lite is a fee free account like the Everyday account.

    One thought here though: I currently have DD set up and receive cashback on both my full fat 123 accounts. Hence if I downgrade one to a Lite (and move the DD to the other full fat account), given the sort code and account number etc stay the same then will it class me as already having been in receipt of cashback pre the downgrade and thus charge me the £1pm fee even if I don’t start receiving cashback post downgrade?

    And am I correct that the £500 pm funding requirement for the Lite is only to qualify for cashback rather than needing to do so to keep the account open?
    • veryintrigued
    • By veryintrigued 10th Oct 18, 7:38 PM
    • 2,754 Posts
    • 2,331 Thanks
    veryintrigued
    123 to Select (to lite)
    I was in the position of (last year) holding the full 123 with DDs and a little cashback. I also held the RS.

    It became apparent that I wasn't getting a good deal so I downgraded to the Select early this year - cancelling all DDs. The advisor stated i would retain the higher rate of RS until it matured four months ago.

    After the RS matured i then renewed it so am currently mid term on it.

    I wonder if, as it stands, I could change my Select CA into a lite and take out the next RS.

    It looks likely that I'd get away with no monthly charge.
    • No_6
    • By No_6 10th Oct 18, 8:41 PM
    • 817 Posts
    • 161 Thanks
    No_6
    @ zero summy
    so I am only getting 1.26 instead of 1.5 with fee's
    from Santander on £20k

    but ALLLLLLLLL: my other accounts are MAXXXXXXXed

    I;m happy with 1.26
    • Zero Sum
    • By Zero Sum 11th Oct 18, 6:28 AM
    • 956 Posts
    • 737 Thanks
    Zero Sum
    @ zero summy
    so I am only getting 1.26 instead of 1.5 with fee's
    from Santander on £20k

    but ALLLLLLLLL: my other accounts are MAXXXXXXXed

    I;m happy with 1.26
    Originally posted by No_6

    Well thats ok then. As ive said previously 1.26% is an ok-ish rate, but lets not pretend you're actually getting 1.5% cos youre not. Too many have fallen for it & think they are.
    • No_6
    • By No_6 11th Oct 18, 9:23 PM
    • 817 Posts
    • 161 Thanks
    No_6
    When you DO all the accounts to save a few pounds !
    here and there, then you are doing your best.

    So I have all THE accounts paying the best rates,

    which happens to include multiple 1.5% @ Santander.
    but it's only 1.26%


    so you tell me where to go for better rates
    • Zero Sum
    • By Zero Sum 11th Oct 18, 9:50 PM
    • 956 Posts
    • 737 Thanks
    Zero Sum
    When you DO all the accounts to save a few pounds !
    here and there, then you are doing your best.

    So I have all THE accounts paying the best rates,

    which happens to include multiple 1.5% @ Santander.
    but it's only 1.26%


    so you tell me where to go for better rates
    Originally posted by No_6

    Multiple santander accounts means you're only getting 1.2% on additional ones.
    There's loads of instant savings accounts paying 1.35% +

    Do you need it all instant access? Have a rolling stock of fixed rate bonds maturing every few months.

    Full fat Santander 123 isnt one of the top paying accounts when you factor in fees. Drop to lite to get DD cash back & move cash to marcus like what many others are doing is a much better option ( theres no £20k limit either)
    • hubb
    • By hubb 12th Oct 18, 7:33 AM
    • 1,984 Posts
    • 378 Thanks
    hubb
    Multiple santander accounts means you're only getting 1.2% on additional ones.
    There's loads of instant savings accounts paying 1.35% +

    Do you need it all instant access? Have a rolling stock of fixed rate bonds maturing every few months.

    Full fat Santander 123 isnt one of the top paying accounts when you factor in fees. Drop to lite to get DD cash back & move cash to marcus like what many others are doing is a much better option ( theres no £20k limit either)
    Originally posted by Zero Sum
    Yes But what if you cant afford to fund a lite a count with £500 a month to get ( in my case) £3 cashback (minus £1 fee) a month AND fund a Marcus acount. Or can I send the £500 to Marcus after it has landed in lite and still earn my cashback ?

    I also have a Halifax reward account of which my money goes through before it reaches the santander 123 earning me £3 which puts me back at £5 free a month when you add the £3 cashback from the 123.
    Last edited by hubb; 12-10-2018 at 7:48 AM.
    • RG2015
    • By RG2015 12th Oct 18, 7:44 AM
    • 1,642 Posts
    • 1,055 Thanks
    RG2015
    Or can I send the £500 to Marcus after it has landed in lite and still earn my cashback ?
    Originally posted by hubb
    You can send the £500 anywhere you like after it has hit the lite. It will still satisfy the monthly funding requirement.
    • SevenOfNine
    • By SevenOfNine 12th Oct 18, 9:41 AM
    • 1,571 Posts
    • 1,666 Thanks
    SevenOfNine
    I've crunched a few numbers trying to answer this question for myself. We currently have a full-fat Santander 123 account, and more than cover the £5 fee with our cashback. We also regularly have a balance north of £15,000 a lot of the time, which many other accounts can't cope with. So for a decent interest rate and a general lack of faffing on, I still think my money is in the right place.
    Originally posted by trailingspouse
    Same here, £20k in the 123 a/c, pretty much cover the £5 fee with cashback. Bounce £1000 in via SO & leave behind just enough to cover the DD's, bouncing remainder straight back out again (via SO), covers monthly pay-in requirement in 2 banks.

    With numerous other banks & savings a/c's I can't be asked to muck about even further, it's adequate.

    What is that supposed to mean ?
    Originally posted by hubb
    It means Karlie88 thinks some people have money to burn - she'd be right, some have. In addition there's also more to life than spending time shunting money all over the place every 5 minutes...Ö...got to get a life balance, it's not all about pounds, shillings & pence for some of us!
    Seen it all, done it all, can't remember most of it.
    • EachPenny
    • By EachPenny 12th Oct 18, 10:28 AM
    • 10,736 Posts
    • 31,538 Thanks
    EachPenny
    It means Karlie88 thinks some people have money to burn - she'd be right, some have. In addition there's also more to life than spending time shunting money all over the place every 5 minutes...…...got to get a life balance, it's not all about pounds, shillings & pence for some of us!
    Originally posted by SevenOfNine
    But opening a Marcus account and transferring the bulk of £20k from a 123 account over to it and leaving it sitting there until needed is not "shunting money all over the place every 5 minutes".

    All the 'shunting' you are talking about is needed to earn cashback and interest in order to cover the £5 fee on the 123 account.

    Ditching the 123 account entirely and moving the savings to Marcus (or some other instant access accounts) would earn you more interest and require less 'shunting'. That would be a better solution for someone who really values the pounds, shillings and pence and their time. (That's the point Karlie88 was making)
    "In the future, everyone will be rich for 15 minutes"
    • Cornucopia
    • By Cornucopia 12th Oct 18, 10:38 AM
    • 12,111 Posts
    • 13,625 Thanks
    Cornucopia
    Santander 123 has been good for a while, but there are now better offers available, depending on the exact circumstances (the point that has been well made further up the thread).

    For example, my local Kent Reliance (bank?) offers 1.65% on a 2 year Bond for new customers, and I am receiving a loyalty rate of 2.1% on this product. Other local and minor institutions are now offering competitive rates (finally).
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    • polymaff
    • By polymaff 12th Oct 18, 11:51 AM
    • 2,767 Posts
    • 1,269 Thanks
    polymaff
    Hey, take it easy !

    The lumpen, non-MSE, masses probably think that we MSEers are ALL lunatics - just some more lunatic than others.
    • RG2015
    • By RG2015 12th Oct 18, 12:49 PM
    • 1,642 Posts
    • 1,055 Thanks
    RG2015
    I can see both sides to the Santander 123 current account versus the Marcus savings account.

    I have downgraded to 123 Lite and transferred c £20k across. It was only then I realised what a pain it would be to keep the balance very low but always have enough to fund the DDs and SOs.

    It was strangely comforting to always have c £20k available in a central hub earning 1.26% even at a cost of about £30 pa before Marcus came out.
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