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  • FIRST POST
    • MSE Naomi
    • By MSE Naomi 14th Jan 20, 11:38 AM
    • 349Posts
    • 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 3
    • Zero Sum
    • By Zero Sum 15th Jan 20, 6:20 PM
    • 1,516 Posts
    • 1,231 Thanks
    Zero Sum
    Presumably this is still worthwhile if you have £20.000 in the a/c
    Originally posted by dralla
    Only if you're a bit lazy & cant be bothered moving a bit of cash about now & then
    • colsten
    • By colsten 15th Jan 20, 6:39 PM
    • 11,661 Posts
    • 11,036 Thanks
    colsten
    Presumably this is still worthwhile if you have £20.000 in the a/c
    Originally posted by dralla
    Whether the account is still worthwhile for you very much depends on how you want / need to use it. For myself, keeping the account is worth it, albeit I have not been keeping £20K in it for some time now. Don't be put off by people who know absolutely nothing about your circumstances and who try to call you lazy - ignore them and work out what works best for your needs.
    • Fingerbobs
    • By Fingerbobs 16th Jan 20, 9:03 AM
    • 854 Posts
    • 369 Thanks
    Fingerbobs


    Only if you're a bit lazy & cant be bothered moving a bit of cash about now & then
    Originally posted by Zero Sum
    It's not laziness for me; it's the risk of forgetting/being away/in hospital/no internet etc. when I need to make the transfer. I like everything to be able to tick over automatically with no manual input.
    • NoodleDoodleMan
    • By NoodleDoodleMan 16th Jan 20, 12:37 PM
    • 1,272 Posts
    • 475 Thanks
    NoodleDoodleMan
    Presumably this is still worthwhile if you have £20.000 in the a/c
    1% interest, minus £60 annual fee, plus whatever cashback applies.

    A doubtful presumption ?
    • enthusiasticsaver
    • By enthusiasticsaver 16th Jan 20, 5:32 PM
    • 9,751 Posts
    • 22,874 Thanks
    enthusiasticsaver
    Your account number and debit card remain the same, I downgraded last month.
    Originally posted by eDicky
    I have just checked online to see how to downgrade from full 123 to 123 lite but got no clarity. How did you do it so the account details stay the same?
    Early retired in December 2017

    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
    • molerat
    • By molerat 16th Jan 20, 6:14 PM
    • 21,817 Posts
    • 16,029 Thanks
    molerat
    Log into your account, on right hand side click upgrade current account, select 123 lite, click upgrade, fill in form.
    https://www.helpforheroes.org.uk/give-support/donate-now/
    • SnowTiger
    • By SnowTiger 16th Jan 20, 7:56 PM
    • 4,019 Posts
    • 2,996 Thanks
    SnowTiger
    Yes it used to be like that here. They were called 'bank charges' and we paid them on all transactions. There was even a time within living memory when we were charged stamp duty on every cheque we wrote. I can remember when bank charges were abolished in the 1980's and offering 'free banking' was the latest thing the banks were introducing to attract customers.
    Originally posted by Ben8282
    Midland Bank TV advert from 1984, advertising 'free banking' as a new thing.

    https://www.youtube.com/watch?v=OE6UAD2B7QU
    • NoodleDoodleMan
    • By NoodleDoodleMan 17th Jan 20, 4:40 PM
    • 1,272 Posts
    • 475 Thanks
    NoodleDoodleMan
    Isn't the 1-2-3 Mini account fee free - and will still get 3% interest after May ?

    Parents could lump two grand in one for their kid in trust and benefit from the better deal until the child reaches 13 - a bit unscrupulous mind you.

    I wonder if Santander will look into that loophole ?

    Santander have confirmed no changes to 1-2-3 Mini accounts.
    • pinkdalek
    • By pinkdalek 17th Jan 20, 8:35 PM
    • 1,307 Posts
    • 781 Thanks
    pinkdalek
    How come Martin Lewis is allowed to give advice? Is he qualified?
    • Zero Sum
    • By Zero Sum 17th Jan 20, 10:16 PM
    • 1,516 Posts
    • 1,231 Thanks
    Zero Sum
    How come Martin Lewis is allowed to give advice? Is he qualified?
    Originally posted by pinkdalek
    He's just stating the obvious tbf.
    • colsten
    • By colsten 18th Jan 20, 12:14 AM
    • 11,661 Posts
    • 11,036 Thanks
    colsten
    How come Martin Lewis is allowed to give advice? Is he qualified?
    Originally posted by pinkdalek
    He is not giving advice, and no, he is not qualified to give financial advice as he doesn't have the required accreditation. I don't believe any of the MSE staff has it, either. For this reason, just about all of the pages on the main site state "This info does not constitute financial advice"

    This does, however, not stop people from blindly following what he writes, ignoring that every page also says "...always do your own research on top to ensure it's right for your specific circumstances and remember we focus on rates not service" and "We're a journalistic website and aim to provide the best MoneySaving guides, tips, tools and techniques, but can't guarantee to be perfect, so do note you use the information at your own risk and we can't accept liability if things go wrong"
    • zealo
    • By zealo 18th Jan 20, 11:58 AM
    • 1 Posts
    • 0 Thanks
    zealo
    Sensible?
    I don't really benefit from the cashback but I like having a fairly large buffer of funds available in my current account (currently maintain £20k in the 123 Santander). I'm not interested in any active maintenance hassle (e.g. cycling money through various accounts). After the rate drops to 1% on the Santander account, I figure it would be better to transfer £10k to a Club Lloyds account, and the rest to a Marcus savings account.




    So


    20000*(1%) - 5*12 = £140 before


    1% * 4000 + 2% * 1000 + 1.35% * 10000 = £195 after


    Is this rational?
    • colsten
    • By colsten 18th Jan 20, 1:10 PM
    • 11,661 Posts
    • 11,036 Thanks
    colsten
    Club Lloyds doesn't pay interest above £5k, and you must regularly cycle £1,500 through the account to avoid monthly fees. Your calculations look ok but there's £5K missing

    Why not put the lot into Marcus?
    • schiff
    • By schiff 18th Jan 20, 1:19 PM
    • 18,798 Posts
    • 10,194 Thanks
    schiff
    Midland Bank TV advert from 1984, advertising 'free banking' as a new thing.
    Originally posted by SnowTiger
    I think that's quite instructive. It isn't everywhere that you can get a extremely efficient service for free and be paid something for what you leave in the account, whether it be at 0.1% or at 1.5%. You could channel 50 SO's and 50 DD's per month through one account for nothing, other than depositing funds in time to meet those requirements.

    I think we tend to overlook that in our drive for the best rates and our disappointment when they are cut.
    • EarthBoy
    • By EarthBoy 18th Jan 20, 1:32 PM
    • 2,226 Posts
    • 1,578 Thanks
    EarthBoy
    Yes I remember the 2d stamp duty on cheques, prepaid when a chequebook was issued. That was the only transaction charge I ever paid a bank, since my first account in 1968. Bank charges may have been common then, but they weren't universal.
    Originally posted by Eco Miser
    No, they weren't. People like to quote Midland Bank as being the first bank to offer free banking, from the mid-80s, but it was available before then if you shopped around.

    I opened my first current account, with TSB, in 1978 and there were no bank charges. I moved to Williams and Glyn's around 1980/81 and they didn't have any bank charges either. I wouldn't have joined them if they had. When more banks started to offer free banking, they usually imposed a condition that you had to keep a minimum credit balance of £50 in your account at all times to avoid the charges. This condition was eventually dropped, until all banks provided free banking as long as you didn't go overdrawn.
    • robatwork
    • By robatwork 19th Jan 20, 9:34 AM
    • 5,473 Posts
    • 6,297 Thanks
    robatwork
    Log into your account, on right hand side click upgrade current account, select 123 lite, click upgrade, fill in form.
    Originally posted by molerat
    Useful info that a Santander secure message failed to procure...ta
    • robatwork
    • By robatwork 20th Jan 20, 8:05 PM
    • 5,473 Posts
    • 6,297 Thanks
    robatwork
    Useful info that a Santander secure message failed to procure...ta
    Originally posted by robatwork
    However for a joint account you both need to visit a branch.
    • Stuart_W
    • By Stuart_W 21st Jan 20, 4:22 PM
    • 1,482 Posts
    • 710 Thanks
    Stuart_W
    No, they weren't. People like to quote Midland Bank as being the first bank to offer free banking, from the mid-80s, but it was available before then if you shopped around.

    I opened my first current account, with TSB, in 1978 and there were no bank charges. I moved to Williams and Glyn's around 1980/81 and they didn't have any bank charges either.
    Originally posted by EarthBoy
    You're right. Lots of options prior to Midland Bank were available to bank for free. I have a feeling that free banking was actually first offered by Co-op Bank in the early 70's with TSB and Girobank being other free options soon afterwards.
    • Bionic woman
    • By Bionic woman 21st Jan 20, 5:08 PM
    • 2 Posts
    • 0 Thanks
    Bionic woman
    Delighted to be able to ditch Santander at last, only stayed for the interest. Absolutely awful customer service and contempt for customers.
    • colsten
    • By colsten 21st Jan 20, 5:15 PM
    • 11,661 Posts
    • 11,036 Thanks
    colsten
    Delighted to be able to ditch Santander at last, only stayed for the interest. Absolutely awful customer service and contempt for customers.
    Originally posted by Bionic woman
    Do you reckon they'll be deeply distraught to see the back of you?
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