123 Current Account

[Connemmara]

Have signed up for this with Santander and hope I have done the right thing - they said as I had so much in the account and direct debits I would get a better interest rate. Now looking on the Santander site I am thinking is there credit card in there - Now I never had a credit card in my life and I don't want one now - just want direct debits to come out immediately out of the account. Can anybody tell me it will be direct debits and an option if I want to use it as a credit card - would that be correct. Thanks in advance.

[dzug2]

The credit card is a completely separate card that you can apply for (or not) as you wish

You will get a DEBIT card to use with the account.

[rockyracoon]

Looks that way to me Conn, scroll down to extra offers available and it says "open a credit card too", that suggests that the credit card is seperate fom the account but will offers benefits because you have the 123.

http://www.santander.co.uk/csgs/Satellite?appID=abbey.internet.Abbeycom&canal=CABBEYCOM&cid=1237892266671&empr=Abbeycom&leng=en_GB&pagename=Abbeycom%2FPage%2FWC_ACOM_ViewSelector

[Connemmara]

Thanks dzugs - you have reassured me.

[omt53]

Connemmara-I have a 123 Santander account-my direct debits are taken from it. The credit card is a separate card. I was given one but like you I've never had a credit card nor do I want to start using one. Santander phoned me a few times and encouraged me to activate the card, I was told of its benefits etc but I had to be very firm in stating I did not want the card!!! The card was then cancelled!

[factor-fiction]

The account (without the credit card) can be good for some people because of the cashback it offers on some payments (council tax and utility bills etc) and the 3% interest it offers on balances over £3000.

However, there is a fee of £2 a month (£24 a year) which is greater than the interest you'll get on balances under £2000. The interest rate is nil up to £1000, it then rises to 1% on balances between £1000 and £2000, and only reaches 3% on balances over £3000.

I t seems like smoke and mirrors to me, but it may suit you

[Connemmara]

thanks all for your answers - I do know about £24 per year but will give it a go - I had been transferring any spare money from the current account online to an ISA online and when I was with Santander they informed ISA was giving 0.5% compared to surely it should be better staying in the current account.

[gingejbee]

...and let's hope you don't have any problems, or need to contact them - their customer service is diabolical.