santander 1 2 3 account

[Benspickup]

Seen the adverts on tv and it seems i would get better interest than having a isa? Any hidden problems? Have 7k sat in a normal account and could have my wages paid into and then out of the account to qualify. Any thoughts?

[sumo69]

You also have to have at least 2 direct debits running from the account.

Aside from that, do it as even after tax on the interest you will earn more than any instant access ISA rate.

David

[DocArbathnot]

Don't expect much customer service, but it is a good rate.

[ringram]

DocArbathnot said:

Don't expect any customer service, but it is a good rate.

Efa

[Elderly]

Your £7K will earn about £17.50 gross interest per month.
Subtract tax @ X0% and their £2.00 per month account charge
and ask yourself if its worth the hassle of changing accounts,
and don't forget that probably your £7K is earning some interest
at the moment.

The 123 account is great if you have their max of £20K saved,
plus their associated ISA, and cashback on a Santander mortage,
and various other cashbacks.

[Teddye4687]

Pretty sure they offer cash back on council tax and utilities though, if you pay these by DD from the account.

Offsets the £2 monthly fee

[driverrob]

Works for me. The net interest rate is better than any ISAs or other saving I have.

I don't have a mortgage or phone contract or Sky. If I did the cashbacks would be even higher and they're not taxable.

[Sir Bagalot]

ringram said:

DocArbathnot said:

Don't expect any customer service, but it is a good rate.

Efa

Elderly said:

ask yourself if its worth the hassle of changing accounts,

bds! You fking bds! You had to go and mention the S word!

They really are a fking piss poor excuse for a fking bank. s is what they are.

[KTF]

I switched to the Santander 123 account at the beginning of the year and have not had a single problem.

They even sent me a letter saying that they forgot to take the £2 account fee a few times in the middle of the year but as that it was their error they wouldn't collect it again.

If you are half competent at operating a bank account and understand how the account works then its well worth the switch. No instant access account will beat the rate they offer.

[Crafty_]

Been with them for years and never, ever had a problem. Mortgage is with them too.

Currently running a 123 account and it works for me, also got the credit card that I use for fuel/supermarket - they waived the fee for the first year on the credit card.

[FiF]

SAme as KTF, not an issue. The switch was completely painless and getting a better rate compared to ISA. I try and keep it maxed up to the 20k limit for the interest. The cashback fees on utilities etc have already paid the annual fee. Likewise the 123 credit card, though they have a slightly confusing way of dealing with credits, but it is potentially to your advantage.

My other accounts with Yorkshire and LLoydsTSB, now TSB, have not been problem free. In fact the Yorkshire issues were in the end so bad it made me walk away.

Santander used to be lousy for customer service but the latest MSE survey lifts them from the bottom. CBA to do a table, sorry.

Rank Provider (no of votes) Poor OK Great
1 Bank of Scot (216) 22% (23%) 43% (44%) 35% (34%)
2 Halifax (922) 19% (18%) 43% (49%) 38% (33%)
3 RBS/NatWest (1,272) 16% (24%) 44% (43%) 40% (33%)
4 Santander (1,491) 19% (23%) 37% (42%) 44% (32%)
5 Barclays (707) 14% (16%) 45% (47%) 41% (37%)
6 HSBC (700) 14% (15%) 44% (43%) 42% (42%)
7 Lloyds TSB (1,045) 14% (16%) 42% (45%) 44% (39%)

[audidoody]

I've been with them for 20 years or more (Abbey days!). Never had a problem. If you've got £10,000 upwards you need to keep in cash there is no better interest rate currently on the market than the 1-2-3.

[vescaegg]

driverrob said:

Works for me. The net interest rate is better than any ISAs or other saving I have.

I don't have a mortgage or phone contract or Sky. If I did the cashbacks would be even higher and they're not taxable.

I hate you