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Santander 123 Account - Monthly Charge To More Than Double

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According to the BBC website:

Santander - the biggest gainer last year of customers switching current accounts - has confirmed that it is to increase charges on one of its most popular accounts. From 11 January, it will charge £5 a month, instead of £2 a month, for its 123 current account. The announcement comes just a few weeks ahead of the initial findings from the competition authorities on the current account market in the UK.

Aren't the banks making enough profit yet?

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I wonder if that will be for all customers. I have this account but haven't been told about it yet. Still if you keep £20000 in it, it is likely to be worth keeping (although I will be double checking what the new net rate will be).

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If you have about £4-5k in one, that will really eat into (and possibly cancel out) the interest paid, as the cash back element on energy/council tax etc. doesn't cover the current £2 a month fee.

Time to look for another option I think.

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Yep, received the letter telling me that the fee will be increasing come the new year.

The interest after basic tax, the fee and keeping £20000 in there all of the time, will now come in at about 2.1%. So worth keeping but there may be some better options out there for some people.

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Yep, received the letter telling me that the fee will be increasing come the new year.

The interest after basic tax, the fee and keeping £20000 in there all of the time, will now come in at about 2.1%. So worth keeping but there may be some better options out there for some people.

There's a generous lift to how much we can earn tax-free next year, so that should bump the percentage up a bit.

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With TSB myself, have a little over 2k in the account and get 5% interest on that + 5% cash back on the first 100 quid of contactless payments per month + 5% interest on 250 quid per month I put into a regular saver.

The 123 Santander account looks a bit inferior in comparison even if it were free it would still be so in my opinion.

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Yes, My parter and I both have TSB accounts and we also have a jointed one. So there's £6k of saving with 5% interest. Only found out about the £5 cash back on the first £100 of contactless payments last month, so have been trying to get that this month (although I hate contactless paying). We will see how well that goes!

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Received the letter, also the Santander 123 credit card fee is increasing by £1/month, from £24 yearly to £3 monthly, and interest rate shooting up.

Depends on your spending whether you'll get enough cashback to cover the fee.

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