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  • FIRST POST
    • hubb
    • By hubb 8th Oct 18, 5:16 PM
    • 1,908Posts
    • 363Thanks
    hubb
    Santander 123 still best savings account ?
    • #1
    • 8th Oct 18, 5:16 PM
    Santander 123 still best savings account ? 8th Oct 18 at 5:16 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 4
    • enthusiasticsaver
    • By enthusiasticsaver 12th Oct 18, 2:06 PM
    • 7,209 Posts
    • 15,711 Thanks
    enthusiasticsaver
    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.
    Originally posted by RG2015
    That is one of the reasons I won't move my 20k from Santander 123. Always having enough in there to cover all eventualities gives great peace of mind. Also Marcus includes a 0.15% bonus which will disappear after 12 months. Also I wish people would not keep saying 1.26%. Santander pays 1.5%. It comes with a fee of 5 per month but the cashback for many of us more than covers that. Moving to Santander lite and going back to juggling money around is not something I want to do.

    1.5% of 20k is 300 interest each year in Santander 123
    Cashback for us averages 8.50 each month so 102 each year.

    Monthly fee is 5 each month so 60 over the year

    Total return is 1.71% on the 20k with no money juggling or need to open another account and move it in 12 months time.
    Debt free and mortgage free and early retiree. Living the dream

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages and Endowments, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com
    • geebomeow
    • By geebomeow 12th Oct 18, 2:12 PM
    • 3 Posts
    • 0 Thanks
    geebomeow
    I just don't like accounts that charge

    then they'll remove incentives and they will be our only option
    • eskbanker
    • By eskbanker 12th Oct 18, 4:54 PM
    • 8,239 Posts
    • 9,251 Thanks
    eskbanker
    I just don't like accounts that charge

    then they'll remove incentives and they will be our only option
    Originally posted by geebomeow
    Despite what the CMA say when they're desperately trying to promote CASS as if that was a valid measure of market competition, there is a massive range of options for UK current account customers, some of which do indeed charge (but typically offer something in return), while others pay credit interest, switching incentives and/or cashback.

    Even those that don't reward customers one way or the other typically don't actually charge (when not overdrawn, etc), so unlike some other countries, it really isn't difficult to bank for no cost here - perhaps it will eventually change (back to how it used to be) but personally I don't see that happening in the foreseeable future....
    • SevenOfNine
    • By SevenOfNine 12th Oct 18, 6:01 PM
    • 1,423 Posts
    • 1,445 Thanks
    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)
    Originally posted by EachPenny
    A burning 10 note doesn't relate to time saving, only 'money to burn'!

    I manage all mine & husbands A/C's, with 13 bank A/Cs (chopped down from about 18 recently), 4 monthly savers, 5 instant access savers, 5 fixed rate bonds & 2 ISA's, though absolutely no doubt a fraction of what others have & manage, it's still enough for me to keep an eye on!

    For some, it's an interesting hobby, for others watching each penny & chasing the best rates. For me neither, not any more.
    Seen it all, done it all, can't remember most of it.
    • No_6
    • By No_6 12th Oct 18, 10:05 PM
    • 677 Posts
    • 139 Thanks
    No_6
    @ zero.sumiy
    I have ALL of the best paying accounts...available

    so will you go find a nice place to sit and forget this POST
    • Zero Sum
    • By Zero Sum 12th Oct 18, 11:39 PM
    • 542 Posts
    • 436 Thanks
    Zero Sum
    That is one of the reasons I won't move my 20k from Santander 123. Always having enough in there to cover all eventualities gives great peace of mind. Also Marcus includes a 0.15% bonus which will disappear after 12 months. Also I wish people would not keep saying 1.26%. Santander pays 1.5%. It comes with a fee of 5 per month but the cashback for many of us more than covers that. Moving to Santander lite and going back to juggling money around is not something I want to do.

    1.5% of 20k is 300 interest each year in Santander 123
    Cashback for us averages 8.50 each month so 102 each year.

    Monthly fee is 5 each month so 60 over the year

    Total return is 1.71% on the 20k with no money juggling or need to open another account and move it in 12 months time.
    Originally posted by enthusiasticsaver
    Santander pays 1.5% in the same vain as we pay the EU 350m a week.
    If you want to use gross crack on, but i'll carry on using the nett figures as they give a more acurate version of reality.
    • No_6
    • By No_6 13th Oct 18, 9:12 PM
    • 677 Posts
    • 139 Thanks
    No_6
    Will you now sit in the chair !

    I have all 3% and 5% accounts paying me !
    so if Santy pays only 1.26 on a 1,5 account
    I'm happy !

    looks like you are NOT as your posts are mainly negative !
    • Zero Sum
    • By Zero Sum 13th Oct 18, 9:30 PM
    • 542 Posts
    • 436 Thanks
    Zero Sum
    Will you now sit in the chair !

    I have all 3% and 5% accounts paying me !
    so if Santy pays only 1.26 on a 1,5 account
    I'm happy !

    looks like you are NOT as your posts are mainly negative !
    Originally posted by No_6
    I assume you're talking to me, even though you're actually talking to yourself (learn to quote man)

    My post arent negative in the slightest, in fact quite the opposite as im suggesting ways to make better use of your money & making sure people understand Santanders misinformation. Ive already stated that 1.26% for instant access is an OK rate (not the best by any means as per thread title which was what i was originally disagreeing with). And for some having all DD's in one place with an OK rate is easier to manage rather than operating multiple account. If you're happy thats fine but as ive said previously just stop pretending you're getting something youre not. Santander 123 full fat isnt a bad option, its just not the best.

    And my last post i wasnt even talking to you, looks like youre getting a bit stalkerish.

    Not sure what your chair thing means either, calm down will you.
    Last edited by Zero Sum; 13-10-2018 at 9:42 PM.
    • No_6
    • By No_6 13th Oct 18, 9:39 PM
    • 677 Posts
    • 139 Thanks
    No_6
    You have still LOST me man !!!
    luckily going on hols....so wont miss this thread.


    Just go and sit on the naughty chair !!!!

    Have fun, be back in 30 days ….

    6
    • Zero Sum
    • By Zero Sum 13th Oct 18, 9:46 PM
    • 542 Posts
    • 436 Thanks
    Zero Sum
    You have still LOST me man !!!
    luckily going on hols....so wont miss this thread.


    Just go and sit on the naughty chair !!!!

    Have fun, be back in 30 days ….

    6
    Originally posted by No_6
    Youve lost yourself.

    You asked me what pays better & i told you. You then went off in a radge

    Still incapable of using quotes, so again you're still just talking to yourself.
    • arrowmaker
    • By arrowmaker 16th Oct 18, 10:50 AM
    • 8 Posts
    • 1 Thanks
    arrowmaker
    Well after being with Santander for years I took the plunge and did what a lot of folks appear to be doing. I switched to a Lite account and moved everything, bar a 1000, into Marcus.

    I must admit I did get a little concerned after filling in the online transfer form, yesterday, and subsequently receiving no email confirmation of the request. However, I checked my account this morning and the account is now showing as 123 Lite. And still no email confirming the switch!

    I don't understand why people are hesitant to make the switch. You are getting the same 1.5% rate as the full 123 account and not paying 5 per month for the privilege. Also as long as the cashback on bills comes to more than a 1 a month then the Lite account is, near enough, free to operate.
    • soulsaver
    • By soulsaver 16th Oct 18, 11:52 AM
    • 2,092 Posts
    • 951 Thanks
    soulsaver

    I don't understand why people are hesitant to make the switch.
    Originally posted by arrowmaker
    I don't understand why anyone wants to go over this again... not for the first time.
    • karlie88
    • By karlie88 16th Oct 18, 11:57 AM
    • 8,540 Posts
    • 106,482 Thanks
    karlie88
    I don't understand why anyone wants to go over this again... not for the first time.
    Originally posted by soulsaver
    Don't understand - can you please explain?
    Official MSE canny forumite and HUKD VIP badge member
    • hubb
    • By hubb 16th Oct 18, 12:18 PM
    • 1,908 Posts
    • 363 Thanks
    hubb
    If I have to leave some of the money in a 123 lite account just to pay bills and earn cashback, then I won't be earning the full interest in a Marcus account because some of it will have to hang around in the lite account earning nothing. And the Marcus will drop it's 0.15% after a year.

    I already earn 2 cashback a month at my Halifax account, which added to the 3 I make in the 123 full account to just over 5 so in effect I get my 5 fee back one way or another.
    • EachPenny
    • By EachPenny 16th Oct 18, 2:05 PM
    • 7,442 Posts
    • 20,192 Thanks
    EachPenny
    If I have to leave some of the money in a 123 lite account just to pay bills and earn cashback, then I won't be earning the full interest in a Marcus account because some of it will have to hang around in the lite account earning nothing. And the Marcus will drop it's 0.15% after a year.
    Originally posted by hubb
    The amount of interest you'll lose if done properly is trivial though.

    And we can almost certainly expect the Marcus rate to drop in a year's time. But as 94 different people have already said on this thread, the 1.5% in the 123 account is also not a certainty.
    I already earn 2 cashback a month at my Halifax account, which added to the 3 I make in the 123 full account to just over 5 so in effect I get my 5 fee back one way or another.
    Originally posted by hubb
    The Halifax 2 has absolutley nothing to do with the 123 account though. This bit of justification for the 5 fee is nonsensical. Using the same logic I could argue that the interest earned in any of my accounts pays the 5 123 fee.

    But whatever agrument is put forward, the fact remains that if you keep a full 123 account then you are paying 4x12=48/year more for your banking than you need to.
    "In the future, everyone will be rich for 15 minutes"
    • polymaff
    • By polymaff 16th Oct 18, 5:30 PM
    • 2,290 Posts
    • 1,001 Thanks
    polymaff
    ... and that is 48 out of your nett income !
    • Zero Sum
    • By Zero Sum 16th Oct 18, 6:23 PM
    • 542 Posts
    • 436 Thanks
    Zero Sum
    If I have to leave some of the money in a 123 lite account just to pay bills and earn cashback, then I won't be earning the full interest in a Marcus account because some of it will have to hang around in the lite account earning nothing. And the Marcus will drop it's 0.15% after a year.

    I already earn 2 cashback a month at my Halifax account, which added to the 3 I make in the 123 full account to just over 5 so in effect I get my 5 fee back one way or another.
    Originally posted by hubb
    The interest problem will always be there regardless. As after payments are made, you'll have less cash in bank which means your effective rate is reduced as the fee is fixed. The only way to avoid it is to have more than 20k but then youre not getting interest on balances over 20k.

    Just keep about 20 in for emergencies & transfer the funds from savings a couple of days before. That way at most you'll lose a few coppers in interest.

    Even after Marcus drops its 0.15% bonus rate, at 1.35% the net benefit is still better than full fat 123
    • eschaton
    • By eschaton 17th Oct 18, 4:22 PM
    • 1,819 Posts
    • 1,604 Thanks
    eschaton
    What I can’t get my head around is people not getting a simple calculation that shows downgrading to Lite is the best option.

    I’ve been considering downgrading for nearly a year. What held me back was where to put the 20k. I was considering a fixed 1 year rate of around 2% but didn’t commit as I may have needed access to it.

    My Birmingham Midshires was paying 1.45% but it’s a slow process to log into with my phone. I opened a Marcus account on Monday and logging in is super quick. I’ve just emptied the BM account into Marcus today (had to leave 1) and will be downgrading my S123 to Lite tonight, and moving the 20k at the same time to Marcus.

    My S123 is the account that funds all my other accounts anyway, so it’ll just take an extra payment from Marcus as and when required.

    Next year I’ll just move the money to the best rate at that time or upgrade S123 again. I currently get around 3.50 in cash back so will now get a true 1.5% rate and a profit on the Lite account fee.
    Last edited by eschaton; 17-10-2018 at 4:27 PM.
    • eschaton
    • By eschaton 17th Oct 18, 4:27 PM
    • 1,819 Posts
    • 1,604 Thanks
    eschaton

    I already earn 2 cashback a month at my Halifax account, which added to the 3 I make in the 123 full account to just over 5 so in effect I get my 5 fee back one way or another.
    Originally posted by hubb
    That’s great logic.

    So you are funding and having 2 DD’s in your Halifax account for nothing.
    Last edited by eschaton; 17-10-2018 at 8:30 PM.
    • roadblock15
    • By roadblock15 18th Oct 18, 12:01 AM
    • 25 Posts
    • 12 Thanks
    roadblock15
    Santander
    In recent years the 123 product line has got rave reviews for rewards and rates for interest, and how all the products tie together. I’m aware these rates and perks have somewhat diminished in recent times but is Santander and the 123 range still competitive against the other offerings?

    (Text removed by MSE Forum Team)
    Last edited by MSE ForumTeam3; 18-10-2018 at 8:29 AM.
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