Santander 123 fees hit £60

[Michael Browne]

Millions have signed-up for Santander’s 123 account, but thanks to a change in fees, it is going to hit the pocket hard. From January, fees are going to almost triple.

 

There’s around 3 million in the UK using the current account, and pay in £2 every month (or £24 a year if you prefer) and, in return, you get cash back on bills and a 3% interest rate.

 

However, as of next year, customers will be paying £60 every year, which is £5 per month.

 

If you have a smaller balance, you will invariably not reap the benefits. So if you have the minimum £3,000 in the bank, you will earn £90 in interest, with £60 of that gone in fees. That’s equivalent to a 1% interest rate.

http://www.bitterwallet.com/santander-123-fees-hit-60/87779

[maroondevo52]

I get £63.48 a year from my 123 Account with Telecoms and Council Tax direct debit payments, never got £3,000 in the account so don't get the interest.

Thinking about just blowing my £3.48 a year on goodies.

[berger15]

I cannot believe they are allowed to hike the fees up so much. We only switched 6 months ago, and although we have already made over £65 in cashback, it seems absolutely appalling that they could do this. I am seriously considering changing banks again.

[Old Cogger]

Do as I just done changed again that is twice in 3 months, there is always a catch and they will/do get away with it!

[No_Money_Babe]

Hi

 

I'm happy with my 123 account. I'm using the £5 I earn from my Halifax Reward account to pay the £5 fee.

[lockhart1]

They had this in mind all along - they made these accounts with the updated fees already in the motions. The current charges were just introductory to get everyone on board and to switch to a good deal. Things that are too good to be true are just that. I think everyone seen this coming.