Rates being slashed on Santander's 123 current account next week

6 January 2016

santander_logoSantander's 123 account has been pretty popular, but the rates paid on the current account are going to be slashed as of next week, thanks to a rise in the monthly fee.

From January 11th, it'll be £5 a month, up from the previous £2. With a lot of people switching to the account for the high interest rate, this'll be irritating news.

As it'll now be charged at £60 per year, which could still be a good deal for those with a reasonable amount in their account. For those with smaller balances, this isn't very good news at all.

So, with £2,500, at £2, you'd earn £16 after charges. With the new £60, it'll wipe your interest and, in the end, you'll be paying Santander £20 to run your account.

It is worth shopping around now, and we previously wrote about this, with some good tips and links to where you can compare accounts which will work for you best.

Have a look, here.

TOPICS:   Banking   Investments   How To Guides

2 comments

  • tom
    ...but you need to factor in that you also get cashback on council tax, and gas electricity and water. On average rates for these the cashback covers the extra payment anyway.
  • **Paul**
    It's worth noting that for those who have a 123 credit card, the new more expensive fee won't kick in until your annual renewal of the card, as you pay the year up front for that. E.g. If you renewed in Dec 2015 (£24) then the higher fee won't be charged to you until Dec 2016. RE: The 123 Current Account, if you have a balance over about £5k and have all your utility bills going out of this account it's still the best on the market. I suspect Santander were well aware of that, and knew that upping the fee wouldn't result in many people switching.

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