Santander 123 Account

[lyricalgangster]

I am sure I just read somewhere that the Santander 123 account is going to cost £5 per month instead of the current £2 per month.

Now, £5 a month isn't a lot of money, but I object out of principle really.

This was the number one account for people switching from their current account to a new one, and I feel that now they have the numbers hooked, start turning the screws!

Just saying, it's not a whine, I get a fair bit more than £5 per month in cashback, but I will out of principle soon be using the new and improved switching service!

Any body else particularly bothered?

It's a bit like flooding the market with cheap heroin, getting loads of people hooked, then nearly tripling the price for no discernable improvement in high...

(Note, I have never, nor ever will, taken drugs of any sort, let alone heroin)

[LastLight]

I switched in May due to the interest paid. It will still be more than the extra fee, but again, I object on grounds of the massive % hike. I've had loads of problems, firstly with their failure to switch some of the promised standing orders and DDs leading to double takes or non payments and especially with their ludicrously twitchy auto fraud alert algorithms.

I've had umpteen payments stopped and/or queries by text - often to a phone necessarily switched off leading to the embarrassment of finding out from the people I'm paying rather than the bank - despite several complaints and requests to learn the likely transactions (as they claimed the software did, huh!) and stop messing me about. With that and this hike I'm off - going to close the account and go elsewhere. Most troublesome bank I've ever been with.

[Jakg]

It's been the same price for years - I'm surprised the cost hasn't risen with inflation, although £2 -> £5 is quite a jump.

[PositronicRay]

We'll be keeping ours. I think it'll still be worth while.

[Sir Bagalot]

Did I ever mention before that Santander are the biggest bunch of fking s and a fking piss poor excuse for a bank? I believe I may have

Do I have an account there? Or course I do It's merely for the cashback DD's and savings and nowt else! (I use First Direct as my main account) If my cashback covers the fees then I'll keep the accounts open. If they don't then they can shove it up their fking arses.

I hope I've made myself clear.

BTW, announcement due this week, and increase probably from 1 Jan.

[BoostMonkey]

Yes they are a **** bank, but what are the other options?

I'm opening one at the end of the month to fill up with cash that was in an ISA.
With governments move to make interest tax free from April, its a no brainer even with the higher charge.

[NerveAgent]

In all honesty, I'm surprised its taken them so long.

As many do, I use it as a savings account, I wonder if any of the other bank will open a (£20k) account with a better rate?

[megaphone]

NerveAgent said:

In all honesty, I'm surprised its taken them so long.

As many do, I use it as a savings account, I wonder if any of the other bank will open a (£20k) account with a better rate?

I'm surprised no other 'bank' has competed with this account, they must have taken loads of customers away from others, or maybe Santander a losing money on each account?

[uknick]

BoostMonkey said:

...With governments move to make interest tax free from April, its a no brainer even with the higher charge.

Does anybody know how this tax free scheme is going to work?

I assume all interest will paid gross and we then have to submit a self assessment to pay tax due on the interest received above the tax free amount.

Or, is there another way to deal with the tax?

[Craikeybaby]

I think it is a bit off that I hear this on PH, rather than from Santander.

[TokyoRich]

I have a few of them as you can open them in joint and sole names.. given we have just bought a house and have no more money I now feel some account consolidation coming..

We use Barclays as our main account, the service there is just incredible - granted I pay a lot for the account but it really is second to none.

[KTF]

Craikeybaby said:

I think it is a bit off that I hear this on PH, rather than from Santander.

It was announced on their press release page and carried by many of the media: http://www.santander.co.uk/uk/infodetail?p_p_id=W0...

[LastLight]

KTF said:

Craikeybaby said:

I think it is a bit off that I hear this on PH, rather than from Santander.

It was announced on their press release page and carried by many of the media: http://www.santander.co.uk/uk/infodetail?p_p_id=W0...

After the courtesy of the letter to customers... oh, hang on.

[Craikeybaby]

Sure;y they should tell their customers directly though. Unless it is only going to affect new customers.

[gangzoom]

Cannot really complain, we have two 1-2-3 accounts purely for the 3% interest and cash back. Between us we're getting back a OK-ish return with the option to move the cash as we want. Will be keeping an eye on what Santander do next though. Any hint of reducing the cash backs or lowering interest rates and we'll just close both accounts and put the cash else where.

[KTF]

LastLight said:

After the courtesy of the letter to customers... oh, hang on.

It says in the release that letters will be sent to customers.

[LastLight]

KTF said:

LastLight said:

After the courtesy of the letter to customers... oh, hang on.

It says in the release that letters will be sent to customers.

Ah, so their customer service department is moving at its customary 'speed' (sic).

[sumo69]

There is no planned change in the interest or cash-back rates, just the monthly fee.

They are also hiking the 123 credit card fee by 50% to £36 per annum and also limiting cashback to NEW applicants. For those, there will be better options but as I net approx £10-£12 per month,I will probably grin and bear it.

David

[sumo69]

uknick said:

Does anybody know how this tax free scheme is going to work?

I assume all interest will paid gross and we then have to submit a self assessment to pay tax due on the interest received above the tax free amount.

Or, is there another way to deal with the tax?

Apart from those that earn > £150k, everyone will have a 0% band with effect from 5/4/16 - £1000 income if a basic-rate taxpayer or £500 if higher-rate.

Only if your annual interest exceeds this will you be required to complete an SA return - however PAYE taxpayers can have the estimated tax charge included on their PAYE coding to eliminate the need for a return should they desire.

This 0% band is only for interest and no other investment income.

David

Edited by sumo69 on Wednesday 16th September 13:26

[uknick]

sumo69 said:

Apart from those that earn > £150k, everyone will have a 0% band with effect from 5/4/16 - £1000 income if a basic-rate taxpayer or £500 if higher-rate.

Only if your annual interest exceeds this will you be required to complete an SA return - however PAYE taxpayers can have the estimated tax charge included on their PAYE coding to eliminate the need for a return should they desire.

This 0% band is only for interest and no other investment income.

David

Edited by sumo69 on Wednesday 16th September 13:29

Thanks for confirming what I thought would be the case. Looks like I'll need to blow the dust off my old self assessment login as it's been over 10 years since I last used it.