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  • FIRST POST
    • MSE Naomi
    • By MSE Naomi 14th Jan 20, 11:38 AM
    • 350Posts
    • 77Thanks
    MSE Naomi
    Martin Lewis says Santander 123 is now a dead duck current account as it cuts interest and cashback
    • #1
    • 14th Jan 20, 11:38 AM
    Martin Lewis says Santander 123 is now a dead duck current account as it cuts interest and cashback 14th Jan 20 at 11:38 AM
    Santander will be slashing current account interest to 1% on its popular 123 account this spring, and introducing a single overdraft interest rate of 39.9%...
    Read the full story:
    'Martin Lewis says Santander 123 is now a dead duck current account as it cuts interest and cashback'

    Click reply below to discuss. If you havenít already, join the forum to reply.
Page 1
    • colsten
    • By colsten 14th Jan 20, 11:42 AM
    • 11,713 Posts
    • 11,057 Thanks
    colsten
    • #2
    • 14th Jan 20, 11:42 AM
    • #2
    • 14th Jan 20, 11:42 AM
    What better alternative has he got in mind for people whose DDs and SOs add up to more than £5k a month, and who easily get £5 cashback each month?
    • minislim
    • By minislim 14th Jan 20, 11:43 AM
    • 345 Posts
    • 209 Thanks
    minislim
    • #3
    • 14th Jan 20, 11:43 AM
    • #3
    • 14th Jan 20, 11:43 AM
    i was going to say Martin wouldn't be happy as only a few weeks ago he'd just started bigging this account back up again.
    • colsten
    • By colsten 14th Jan 20, 12:15 PM
    • 11,713 Posts
    • 11,057 Thanks
    colsten
    • #4
    • 14th Jan 20, 12:15 PM
    • #4
    • 14th Jan 20, 12:15 PM
    He'd only be unhappy if they had cut the referral fee. Which they seem to have done, too, as there's not a single asterisk against Santander in that "ditch it!" announcement
    • colsten
    • By colsten 14th Jan 20, 12:22 PM
    • 11,713 Posts
    • 11,057 Thanks
    colsten
    • #5
    • 14th Jan 20, 12:22 PM
    • #5
    • 14th Jan 20, 12:22 PM
    There's already an earlier thread on this here: https://forums.moneysavingexpert.com/showthread.php?p=76720343&posted=1#post76720343
    • VT82
    • By VT82 14th Jan 20, 2:10 PM
    • 1,054 Posts
    • 897 Thanks
    VT82
    • #6
    • 14th Jan 20, 2:10 PM
    • #6
    • 14th Jan 20, 2:10 PM
    Regarding the new cashback cap for each tier, do many people spend over £166 on phone, broadband, mobile and TV bills per month, over £250 on gas and electricity per month, or over £500 on water and council tax per month?


    Because that's how much people would need to spend to get the level of cashback the Santander spokesperson refers to!
    • soulsaver
    • By soulsaver 14th Jan 20, 2:13 PM
    • 2,646 Posts
    • 1,330 Thanks
    soulsaver
    • #7
    • 14th Jan 20, 2:13 PM
    • #7
    • 14th Jan 20, 2:13 PM
    Regarding the new cashback cap for each tier, do many people spend over £166 on phone, broadband, mobile and TV bills per month, over £250 on gas and electricity per month, or over £500 on water and council tax per month?


    Because that's how much people would need to spend to get the level of cashback the Santander spokesperson refers to!
    Originally posted by VT82
    But include Santander mortgages?
    • quirkydeptless
    • By quirkydeptless 14th Jan 20, 3:21 PM
    • 455 Posts
    • 452 Thanks
    quirkydeptless
    • #8
    • 14th Jan 20, 3:21 PM
    • #8
    • 14th Jan 20, 3:21 PM
    Santander are number 1 read article on BBC News at the moment

    https://www.bbc.co.uk/news/business-51106886
    This is not investment advice.
    Your money may go "down and up and down and up and down and up and down ... down and up and down and up and down and up and down ... I got all tricked up and came up to this thing, lookin' so fire hot, a twenty out of ten..."
    • VT82
    • By VT82 14th Jan 20, 3:26 PM
    • 1,054 Posts
    • 897 Thanks
    VT82
    • #9
    • 14th Jan 20, 3:26 PM
    • #9
    • 14th Jan 20, 3:26 PM
    But include Santander mortgages?
    Originally posted by soulsaver
    Crikey I hadn't even spotted the change with the mortgage cashback cap and being lumped in with the 1% tier. Immediate potential loss of up to £5pm and maybe more if it eats into your council tax cashback. That one's a real stinger!!
    • Zero Sum
    • By Zero Sum 14th Jan 20, 6:38 PM
    • 1,527 Posts
    • 1,236 Thanks
    Zero Sum
    Regarding the new cashback cap for each tier, do many people spend over £166 on phone, broadband, mobile and TV bills per month, over £250 on gas and electricity per month, or over £500 on water and council tax per month?


    Because that's how much people would need to spend to get the level of cashback the Santander spokesperson refers to!
    Originally posted by VT82
    No but with gas/electric you can artificially bump up your DD's then request a refund for the overpayment. Then click the cashback on the larger DD.
    • Ben8282
    • By Ben8282 14th Jan 20, 6:59 PM
    • 4,763 Posts
    • 2,636 Thanks
    Ben8282
    Regarding the new cashback cap for each tier, do many people spend over £166 on phone, broadband, mobile and TV bills per month, over £250 on gas and electricity per month, or over £500 on water and council tax per month?


    Because that's how much people would need to spend to get the level of cashback the Santander spokesperson refers to!
    Originally posted by VT82
    No to all 3
    No but with gas/electric you can artificially bump up your DD's then request a refund for the overpayment. Then click the cashback on the larger DD.
    Originally posted by Zero Sum
    Yes but how many people are going to be happy about doing that, how many people can afford to do that every month, how many people could actually be bothered and how are the utility providers going to react to constant demands for repayments? They will simply reduce the direct debits ….
    Last edited by Ben8282; 14-01-2020 at 7:03 PM.
    • Wheres My Cashback
    • By Wheres My Cashback 14th Jan 20, 7:04 PM
    • 3,270 Posts
    • 38,236 Thanks
    Wheres My Cashback
    Santander will be slashing current account interest to 1% on its popular 123 account this spring, and introducing a single overdraft interest rate of 39.9%...
    Read the full story:
    'Martin Lewis says Santander 123 is now a dead duck current account as it cuts interest and cashback'

    Click reply below to discuss. If you havenít already, join the forum to reply.
    Originally posted by MSE Naomi
    I think most savvy people realised about 2/3 years ago the the 123 account was a dead duck effectively only paying 1.19% after the fee, whereas there were dozens of savings accounts paying more.
    • Zero Sum
    • By Zero Sum 14th Jan 20, 7:14 PM
    • 1,527 Posts
    • 1,236 Thanks
    Zero Sum
    No to all 3
    Yes but how many people are going to be happy about doing that, how many people can afford to do that every month, how many people could actually be bothered and how are the utility providers going to react to constant demands for repayments? They will simply reduce the direct debits Ö.
    Originally posted by Ben8282
    Most wont do it cos its a bit of effort but it is more to highlight that it is possible to squeeze a bit more cash out of the banks to maximise returns. It is basically just clicking a few buttons on phone once a month. Affordability doesnt really come into it, overpay by £200 then log onto electric account on that day for refund & money is back in account 2 or 3 days later. It's essentially getting 24% return on a £200 lump you've set aside.

    British gas are a pain though as they review your account every 6 months & just block any changes so cant refund twice a year then change DD. So need to re-amend.
    • surreysaver
    • By surreysaver 14th Jan 20, 7:47 PM
    • 2,981 Posts
    • 1,655 Thanks
    surreysaver
    I think most savvy people realised about 2/3 years ago the the 123 account was a dead duck effectively only paying 1.19% after the fee, whereas there were dozens of savings accounts paying more.
    Originally posted by Wheres My Cashback
    Which is when and why I downgraded mine to a Lite and kept it at a nominal £0 (I do have an overdraft to allow dds and SOs to work)
    I consider myself to be a male feminist. Is that allowed?
    • Malchester
    • By Malchester 14th Jan 20, 8:12 PM
    • 187 Posts
    • 125 Thanks
    Malchester
    Never listen to a word Martin says. It is mainly hype. Uses the word 'trick' in many posts when it means ' do the bleeding obvious'
    • colsten
    • By colsten 14th Jan 20, 8:49 PM
    • 11,713 Posts
    • 11,057 Thanks
    colsten
    I think most savvy people realised about 2/3 years ago the the 123 account was a dead duck effectively only paying 1.19% after the fee, whereas there were dozens of savings accounts paying more.
    Originally posted by Wheres My Cashback
    Your definition of 'savvy' doesn't appear to include people who have large numbers of SOs and DDs coming out of their current account, and who don't have the time to manually refill that current account with the required funds on an ongoing basis. There also never were dozens of access savings accounts that paid more than 1.5% and provided instant access.

    Good go at trying to insult a whole host of truly savvy MSEers in one go. Shame it didn't work.
    • Zero Sum
    • By Zero Sum 14th Jan 20, 8:54 PM
    • 1,527 Posts
    • 1,236 Thanks
    Zero Sum
    There also never were dozens of access savings accounts that paid more than 1.5% and provided instant access.

    Good go at trying to insult a whole host of truly savvy MSEers in one go. Shame it didn't work.
    Originally posted by colsten

    And at no point was this ever claimed.

    What was claimed that there were dozens paying more that 1.19% (which is the real rate of 123). And this is true.
    • Wheres My Cashback
    • By Wheres My Cashback 14th Jan 20, 9:04 PM
    • 3,270 Posts
    • 38,236 Thanks
    Wheres My Cashback
    Your definition of 'savvy' doesn't appear to include people who have large numbers of SOs and DDs coming out of their current account, and who don't have the time to manually refill that current account with the required funds on an ongoing basis. There also never were dozens of access savings accounts that paid more than 1.5% and provided instant access.

    Good go at trying to insult a whole host of truly savvy MSEers in one go. Shame it didn't work.
    Originally posted by colsten
    Exactly, it doesn't include those who are too lazy/don't make the time as everyone has the time IF they really want to do it. Maybe that was your feeble excuse? If you can't be bothered then you've insulted yourself.
    60mins to set up, 10 mins to facilitate each month
    out of 43000+ mins....hardly onerous is it.

    I never said there were dozens paying more than 1.5%, I said more than 1.19% which there were at that time and there still are a few, whether easy access or fixed but you already know that don't you.
    • Wheres My Cashback
    • By Wheres My Cashback 14th Jan 20, 9:07 PM
    • 3,270 Posts
    • 38,236 Thanks
    Wheres My Cashback
    And at no point was this ever claimed.

    What was claimed that there were dozens paying more that 1.19% (which is the real rate of 123). And this is true.
    Originally posted by Zero Sum
    Thanks for pointing that out Zero as clearly that claim was only obvious to the savvy
    • colsten
    • By colsten 14th Jan 20, 9:15 PM
    • 11,713 Posts
    • 11,057 Thanks
    colsten
    What was claimed that there were dozens paying more that 1.19% (which is the real rate of 123). And this is true.
    Originally posted by Zero Sum
    No, there weren't even dozens with instant access paying more than 1.19%. Not that I recognise 1.19%, as I have enough cashback to eliminate the monthly fee. Before you say '123 Lite', I have just posted elsewhere why that is not a viable alternative for me.
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