Santander 123 bank account

[notagainmummy]

I have a Santander 123 bank account because the interest rate on the balance was good for a while. It's now reduced and I get around £5 for a £10000 balance, but pay a £5 fee. I want to stay with them but stop paying the monthly fee. Is this possible. I will put the savings into premium bonds.

Choose a different current account with them and ask them to switch it. Do you not get the cashback as well.as interest?

www.santander.co.uk/personal/current-accounts

Most of the others don't offer interest on the balance

The fee is about to drop and so is the interest. Do the sums to see if it balances out. They also do a 123 lite account with no interest and (I think) a lower fee.

Interest on current accounts long gone. And in real terms long gone on savings too. Government instruction is to piss it away,but they won't help if you do.

Yeah just ask to switch to a no fee account. But don't you get cash back on your utilities too? It's nowhere near as good as it used to be but I find it still covers the fee. No current account pays decent interest these days.

You might be better with the 123 Lite account. The fee is £2 pm and you still get the cashback. Our bills are pretty minimal (band A council tax, no pay TV, only pay £15 a month for mobile phones) but we make a quid or two a month over the fee so it's worth having considering 'interest' isn't really a thing right now. You can switch by clicking a link in online banking).

Our emergency fund and short to medium term savings is now in Premium Bonds.

@dementedpixie

Choose a different current account with them and ask them to switch it. Do you not get the cashback as well.as interest?

I dont have direct debits coming from this account, we have a joint bills account, which is just a normal account.

Thanks, I'll go for the 123 Lite, and shift to premium bonds. My sister has £15K in there and in two years has won £450 in prizes all put back into the balance. That looks far better to me, although I'll probably never win a thing!

There's probably no point having the 123 Lite account if you don't pay your bills from that account as you'd be paying the £2 a month for nothing.

Either pay your bills from a 123 account or switch to a free account.

I switched to the 123 lite but I pay my DD's through there so receive cash back which cancels out the £2.00 account fee.