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  • FIRST POST
    • hubb
    • By hubb 8th Oct 18, 4:16 PM
    • 1,984Posts
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    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 1
    • soulsaver
    • By soulsaver 8th Oct 18, 4:23 PM
    • 2,348 Posts
    • 1,139 Thanks
    soulsaver
    • #2
    • 8th Oct 18, 4:23 PM
    • #2
    • 8th Oct 18, 4:23 PM
    Yep - amongst other things you're missing, Santander 123 isn't a savings account.
    • EachPenny
    • By EachPenny 8th Oct 18, 4:25 PM
    • 10,736 Posts
    • 31,538 Thanks
    EachPenny
    • #3
    • 8th Oct 18, 4:25 PM
    • #3
    • 8th Oct 18, 4:25 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 ?
    Originally posted by hubb
    Convert your 123 account to a 123Lite (so you still get the cashback) which reduces the monthly fee from 5 down to 1, then put the money from your 123 account into Marcus at 1.5%.

    You will be 4 x 12 = 48 per year better off (Roughly, and terms and conditions apply )
    "In the future, everyone will be rich for 15 minutes"
    • hubb
    • By hubb 8th Oct 18, 5:00 PM
    • 1,984 Posts
    • 378 Thanks
    hubb
    • #4
    • 8th Oct 18, 5:00 PM
    • #4
    • 8th Oct 18, 5:00 PM
    Convert your 123 account to a 123Lite (so you still get the cashback) which reduces the monthly fee from 5 down to 1, then put the money from your 123 account into Marcus at 1.5%.

    You will be 4 x 12 = 48 per year better off (Roughly, and terms and conditions apply )
    Originally posted by EachPenny
    I don't understand what you mean, what would be the point of that when I could just move all my money now into Marcus now ?
    • YorkshireBoy
    • By YorkshireBoy 8th Oct 18, 5:03 PM
    • 30,661 Posts
    • 18,676 Thanks
    YorkshireBoy
    • #5
    • 8th Oct 18, 5:03 PM
    • #5
    • 8th Oct 18, 5:03 PM
    I don't understand what you mean, what would be the point of that when I could just move all my money now into Marcus now ?
    Originally posted by hubb
    An assumption has been made that you were getting a reasonable amount of DD cashback each month to offset the 5 per month fee.

    If you weren't, then there were almost certainly better options over the last 3 years than Santander 123.
    • hubb
    • By hubb 8th Oct 18, 5:13 PM
    • 1,984 Posts
    • 378 Thanks
    hubb
    • #6
    • 8th Oct 18, 5:13 PM
    • #6
    • 8th Oct 18, 5:13 PM
    Looking at it now I earn about 3 cashback so perhaps it's time to move.
    • EachPenny
    • By EachPenny 8th Oct 18, 5:14 PM
    • 10,736 Posts
    • 31,538 Thanks
    EachPenny
    • #7
    • 8th Oct 18, 5:14 PM
    • #7
    • 8th Oct 18, 5:14 PM
    I don't understand what you mean, what would be the point of that when I could just move all my money now into Marcus now ?
    Originally posted by hubb
    Ok, try this....
    Put the money from your 123 account into Marcus at 1.5%. And convert your 123 account to a 123Lite (so you still get the cashback) which reduces the monthly fee from 5 down to 1.

    You will be 4 x 12 = 48 per year better off (Roughly, and terms and conditions apply )
    I assumed from your first post that the monthly cashback you get might be more than 1, but if not, other options might be more appropriate. (e.g. depending whether you want ongoing access to the Santander RS account)
    "In the future, everyone will be rich for 15 minutes"
    • hubb
    • By hubb 8th Oct 18, 5:22 PM
    • 1,984 Posts
    • 378 Thanks
    hubb
    • #8
    • 8th Oct 18, 5:22 PM
    • #8
    • 8th Oct 18, 5:22 PM
    Ok, try this....


    I assumed from your first post that the monthly cashback you get might be more than 1, but if not, other options might be more appropriate. (e.g. depending whether you want ongoing access to the Santander RS account)
    Originally posted by EachPenny
    Yes but with a 123 lite you don't get the 1.5% interest on your savings.
    • Zanderman
    • By Zanderman 8th Oct 18, 5:29 PM
    • 2,214 Posts
    • 5,056 Thanks
    Zanderman
    • #9
    • 8th Oct 18, 5:29 PM
    • #9
    • 8th Oct 18, 5:29 PM
    Ok... here's the deal people are telling you about....

    The suggestion is that firstly you move the bulk of your cash from 123 to marcus. It will earn 1.5%. Same as 123 except that there's no monthly fee to pay. This is good.

    Secondly, you keep your account with santander but convert it to 123 Lite. This earns no interest - but no matter you're getting that in Marcus - but it DOES earn cashback - which marcus doesn't. And the fee is lower than original 123 . This is good too.

    So you get your interest, you get your cashback and you pay a lower fee.

    BUT you have two accounts where you previously had one and you'll have to manage the 123 Lite to make sure it has enough for your DDs each month (as most of your cash will be in Marcus).
    • trailingspouse
    • By trailingspouse 8th Oct 18, 5:29 PM
    • 3,590 Posts
    • 6,592 Thanks
    trailingspouse
    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.
    • Zanderman
    • By Zanderman 8th Oct 18, 5:33 PM
    • 2,214 Posts
    • 5,056 Thanks
    Zanderman
    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
    You could move most of that 15k to marcus, switch the 123 to 123 Lite and be about 48 better off each year. The only faff is if you keep the 123 lite balance so low it becomes a problem for outgoings.
    • hubb
    • By hubb 8th Oct 18, 5:35 PM
    • 1,984 Posts
    • 378 Thanks
    hubb
    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
    You are in exactly the same place as me so I will stick. My other account is the Halifax where I pay a couple of DD so I could move those over to Santander as I too don't want the complication of having yet another bank account to deal with.
    • karlie88
    • By karlie88 8th Oct 18, 5:44 PM
    • 8,796 Posts
    • 108,133 Thanks
    karlie88
    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
    You are in exactly the same place as me so I will stick. My other account is the Halifax where I pay a couple of DD so I could move those over to Santander as I too don't want the complication of having yet another bank account to deal with.
    Originally posted by hubb
    Official MSE canny forumite and HUKD VIP badge member
    • YorkshireBoy
    • By YorkshireBoy 8th Oct 18, 5:49 PM
    • 30,661 Posts
    • 18,676 Thanks
    YorkshireBoy
    You are in exactly the same place as me so I will stick. My other account is the Halifax where I pay a couple of DD so I could move those over to Santander as I too don't want the complication of having yet another bank account to deal with.
    Originally posted by hubb
    That sounds like you're also giving up another 24 a year if it was a Reward account. For 24 a year I wouldn't set an account up, but if it was already running (as my 4 Reward accounts are), then I'd leave be.

    Look after the pennies...
    • hubb
    • By hubb 8th Oct 18, 6:07 PM
    • 1,984 Posts
    • 378 Thanks
    hubb
    Originally posted by karlie88
    What is that supposed to mean ?
    • EachPenny
    • By EachPenny 8th Oct 18, 6:08 PM
    • 10,736 Posts
    • 31,538 Thanks
    EachPenny
    Yes but with a 123 lite you don't get the 1.5% interest on your savings.
    Originally posted by hubb
    Which is why you move most of your savings to the Marcus account where it will earn 1.5% interest.

    trailingspouse's number crunching is deeply flawed and is not the right basis on which to make a decision. (but of course they are entitled to make that decision if they so wish).

    Trying to avoid 'faff' is a valid reason to make a particular decision, in which case you need to look at which combination of accounts generates the most money for the least 'faff', and close (or make dormant) the other ones. In your case one factor not previously mentioned is whether the DD's you have with Halifax would earn cashback with the 123 account, and whether that cashback would be more than 2 per month.
    Last edited by EachPenny; 08-10-2018 at 6:10 PM. Reason: Typo
    "In the future, everyone will be rich for 15 minutes"
    • hubb
    • By hubb 8th Oct 18, 6:13 PM
    • 1,984 Posts
    • 378 Thanks
    hubb
    Which is why you move most of your savings to the Marcus account where it will earn 1.5% interest.

    trailingspouse's number crunching is deeply flawed and is not the right basis on which to make a decision. (but of course they are entitled to make that decision if they so wish).

    Trying to avoid 'faff' is a valid reason to make a particular decision, in which case you need to look at which combination of accounts generates the most money for the least 'faff', and close (or make dormant) the other ones. In your case one factor not previously mentioned is whether the DD's you have with Halifax would earn cashback with the 123 account, and whether that cashback would be more than 2 per month.
    Originally posted by EachPenny
    They probably won't make up the fiver a month in all honesty but if I move my lump over to Marcus it is a variable rate but it won't do me any harm to open one for the option of moving amounts over.
    • YorkshireBoy
    • By YorkshireBoy 8th Oct 18, 6:16 PM
    • 30,661 Posts
    • 18,676 Thanks
    YorkshireBoy
    if I move my lump over to Marcus it is a variable rate
    Originally posted by hubb
    Just like Santander then? They've previous form for varying the interest rate and the monthly fee.
    but it won't do me any harm to open one for the option of moving amounts over.
    It seems you're being won over. Doing that would be a smart move.
    • hubb
    • By hubb 8th Oct 18, 6:43 PM
    • 1,984 Posts
    • 378 Thanks
    hubb
    Just like Santander then? They've previous form for varying the interest rate and the monthly fee.It seems you're being won over. Doing that would be a smart move.
    Originally posted by YorkshireBoy
    And I can't see any criteria for depositing a minimum amount per month to qualify.
    • trailingspouse
    • By trailingspouse 8th Oct 18, 7:30 PM
    • 3,590 Posts
    • 6,592 Thanks
    trailingspouse
    No, I don't think my calculations are 'deeply flawed'.
    Marcus only pays 1.5% for a year, so if I went down that route I'd have to rethink it all in a year's time anyway. And I'd have to pay 500 a month into the Santander Lite account (where it wouldn't be earning any interest) and keep a balance in that account sufficient to cover my direct debits. Seems a lot of bother when I'm already getting 1.5% and cashback. I just don't think the marginal gains are high enough.
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