Santander
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- Lemon Slice
- Posts: 608
- Joined: March 18th, 2017, 10:22 pm
Santander
E-mail received today saying they’re reducing the interesting rate rate to 0.3% (from 0.6%) and monthly costs to £4 (from £3) on my 123 account. Still get the cash back but the returns on cash really are pathetic. I’m not a rate tart and have household bills coming out of the account by DD but I’ll have a look round.
Best wishes,
Steve
Best wishes,
Steve
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- Lemon Quarter
- Posts: 1562
- Joined: November 4th, 2016, 3:54 pm
Re: Santander
Nothing to stop you looking around.
But, when interest rates are this low it's not normally worth the trip changing accounts. Where else are you going to get 0.3% on up to £20K of instant access cash in a current account ? There are other accounts paying 0.5% but not on up to £20K.
The account will still be massively competitive.
But, when interest rates are this low it's not normally worth the trip changing accounts. Where else are you going to get 0.3% on up to £20K of instant access cash in a current account ? There are other accounts paying 0.5% but not on up to £20K.
The account will still be massively competitive.
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- Lemon Slice
- Posts: 608
- Joined: March 18th, 2017, 10:22 pm
Re: Santander
You’re right that it’s hardly worth the trouble but for almost no trouble I can move most of the Santander cash to Marcus and gain a small uplift. In absolute amounts it’s trivial ...
Best wishes,
Steve
Best wishes,
Steve
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- Lemon Slice
- Posts: 726
- Joined: November 4th, 2016, 6:29 pm
Re: Santander
I believe the monthly fee is reducing rather than increasing, see here:Steveam wrote:...and monthly costs to £4 (from £3) on my 123 account.
https://www.santander.co.uk/about-santa ... erest-rate
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- Lemon Quarter
- Posts: 1186
- Joined: November 8th, 2016, 2:20 am
Re: Santander
You can still get the cashback on the lite version - 0% interest and fee £2 per month.Steveam wrote:E-mail received today saying they’re reducing the interesting rate rate to 0.3% (from 0.6%) and monthly costs to £4 (from £3) on my 123 account. Still get the cash back but the returns on cash really are pathetic. I’m not a rate tart and have household bills coming out of the account by DD but I’ll have a look round.
Best wishes,
Steve
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- Lemon Pip
- Posts: 82
- Joined: September 5th, 2017, 7:51 pm
Re: Santander
I moved to the lite version a while ago , and since they reduced the tv/ phone cashback to 1% its only just covering the £2 cost (think Im making about 60p per month) and in the 2 months I dont pay council tax Im loosing money. They increased the water to 3% bit thats a lot less than the phone / TV 3%
over the year I think im making about £5 a year after costs
just waiting for someone to have an offer of £100 or so for opening an account then it will move
over the year I think im making about £5 a year after costs
just waiting for someone to have an offer of £100 or so for opening an account then it will move
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- Lemon Half
- Posts: 6209
- Joined: November 4th, 2016, 11:24 am
Re: Santander
You can change your council tax to be paid over 12 months instead of the usual 10. My council lets you do that online, and I did so a few years back precisely for a Santander 123 a/c.steelman99 wrote:... in the 2 months I dont pay council tax Im loosing money.
(I expect most councils will be like mine in only letting you set up 12 month billing on a whole tax year basis, so if you set it up now it'd start in April.)
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- Lemon Slice
- Posts: 726
- Joined: November 4th, 2016, 6:29 pm
Re: Santander
I'm not sure I understand the logic of that, surely the total cashback paid over the year will be the same???mc2fool wrote:You can change your council tax to be paid over 12 months instead of the usual 10. My council lets you do that online,steelman99 wrote:... in the 2 months I dont pay council tax Im loosing money.and I did so a few years back precisely for a Santander 123 a/c.
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- Lemon Slice
- Posts: 851
- Joined: November 7th, 2016, 4:21 pm
Re: Santander
Stompa wrote:I'm not sure I understand the logic of that, surely the total cashback paid over the year will be the same???mc2fool wrote: You can change your council tax to be paid over 12 months instead of the usual 10. My council lets you do that online,and I did so a few years back precisely for a Santander 123 a/c.
no cash back on council tax is 1%...but that is liited to £5 in any one month
so council tax of £2000 (if you very lucky) gets £5
but
if you pay it monthly at +/- £200 a month you get £2 each month as cash back......so in example you get £24...not the £5
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- Lemon Quarter
- Posts: 1728
- Joined: November 4th, 2016, 10:25 am
Re: Santander
I'm not convinced that an effective rate of 0.06%pa ignoring cashback is that competitive. The headline rate gives you £60 interest in a full year if your balance never drops below £20K. You pay £48 in monthly fees. So that's a net £12 in the full year.richlist wrote:Nothing to stop you looking around.
But, when interest rates are this low it's not normally worth the trip changing accounts. Where else are you going to get 0.3% on up to £20K of instant access cash in a current account ? There are other accounts paying 0.5% but not on up to £20K.
The account will still be massively competitive.
Admittedly the amount to be gained elsewhere is still small in absolute terms.
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- Lemon Quarter
- Posts: 1562
- Joined: November 4th, 2016, 3:54 pm
Re: Santander
Clearly it's not going to work for everyone but.......
My £5 a month charge is more than covered by cashback payments for utilities.
So I'm currently getting the full 0.6% interest on my balance + a bit more.
My £5 a month charge is more than covered by cashback payments for utilities.
So I'm currently getting the full 0.6% interest on my balance + a bit more.
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- Lemon Half
- Posts: 6209
- Joined: November 4th, 2016, 11:24 am
Re: Santander
Oh yeah, you're right. I did it so it qualifies as one of the required DDs each month. It was quite a while ago and I'd forgotten the exact motivation.Stompa wrote:I'm not sure I understand the logic of that, surely the total cashback paid over the year will be the same???mc2fool wrote: You can change your council tax to be paid over 12 months instead of the usual 10. My council lets you do that online, and I did so a few years back precisely for a Santander 123 a/c.
![Very Happy :D](./images/smilies/icon_e_biggrin.gif)
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- Lemon Slice
- Posts: 726
- Joined: November 4th, 2016, 6:29 pm
Re: Santander
AFAIK the Santander 123 has only ever required 2 active DDs, they don't need to be triggered every month. I used to have a second account that just had 2 DDs, each of which triggered once a year, and it was just fine.mc2fool wrote:I did it so it qualifies as one of the required DDs each month. It was quite a while ago and I'd forgotten the exact motivation.I did the same with water and TV license (it's not my only current a/c).
So I don't think you actually needed to do that!
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- Lemon Half
- Posts: 6209
- Joined: November 4th, 2016, 11:24 am
Re: Santander
Well, I guess I'd interpreted "active" as being used each month, as some other banks require, e.g. https://www.bankofscotland.co.uk/bankac ... ntage.html. But it doesn't matter, when I did it I also did the same with DDs from other accounts that don't have a DD requirement, so I'm happy anyway ...Stompa wrote:AFAIK the Santander 123 has only ever required 2 active DDs, they don't need to be triggered every month. I used to have a second account that just had 2 DDs, each of which triggered once a year, and it was just fine.mc2fool wrote:I did it so it qualifies as one of the required DDs each month. It was quite a while ago and I'd forgotten the exact motivation.I did the same with water and TV license (it's not my only current a/c).
![Very Happy :D](./images/smilies/icon_e_biggrin.gif)