Has the Stander 123 account lost its way?

[steelman99]

Like a lot of people who use the santander 123 account , I keep the balance near the £20k limit for the interest , but with £5 a month charge and the increase in interest rates elsewhere , has it now lost its usefulness?

Assuming you keep £20k in the account for the full month , you get £300 per year interest , but pay £60 in fees , so net £240.

The best instant access savings account now pays 1.3% or £260 per year interest so with the santander account your actually £20 per year worse off

I know there's the cash back on bills with santander , but with the santander light account , you get the cashback with a £1 per month charge ,

Ok - your only £8 per a year better off now with the savings account over santander 123 lite , but if interest rates keep creeping up , its something to watch out for

Then there's the Nat West Reward account - which can be better than santander light depending on your bills

[fisher]

I already had a Natwest current account, so 6 months ago I closed my Santander 123, moved the cash to a different savings account I have that pays 1.25%, changed my Natwest account to a Reward account (£2 monthly fee) and took the Natwest Reward Credit Card too (no fee if you have the Reward Current Account). I get loads more in rewards now than I used to with Santander and no £5 fee.

I think Santander 123 has lost most of its usefulness.

[supremetwo]

Not just the 123.

They also reduced the rate on ISA well below the competition.

Too much cheap money still around from central banks.
https://www.weforum.org/agenda/2017/06/ ... eap-money/

The policy that really is robbing the generation that has saved.

[GeoffF100]

I average about £2 per month cash back, so the net cost is £5 - £2 = £3 per month, or £36 per year. The additional interest of £20K is £40 pa, so I roughly break even. The advantage is that I always have £20K for immediate use. I do not have to transfer money in first. Santander (and Abbey before them) have been reliable. Most of other big banks have horror stories. I do not expect Santander is immune though. It is only a matter of time before they have a disaster too.

[MikeyWorld]

There is the linked online saver (that you need to open in branch) £200 month @ 5% (did drop to 3% then returned to 5%)

I've been thinking about moving to the lite version and sticking the cash in a global equity fund.

I've got an offset mortgage to draw upon if needed.

[77ss]

......

Assuming you keep £20k in the account for the full month , you get £300 per year interest , but pay £60 in fees , so net £240.

The best instant access savings account now pays 1.3% or £260 per year interest so with the santander account your actually £20 per year worse off ....

One has to do the sums - and set up the direct debits. I average £3.50 a month cashback, so my net figure is £282. £22 a year better off than in your 1.3% account.

Not what it was when the interest rate was 3%, sure, but it still works for me - and I find having a £20K slush fund useful.

[CryptoPlankton]

Having read this thread, I have mixed feelings about the fact that my average cashback more than offsets the £5 monthly fee! Still, given my apparently profligate lifestyle, the account still works for me