Account 123 of Santander, is it worth it?

[palotes]

Hello everyone. I've been at Santander for quite some time because I'm enrolled in university and the other day I saw about the 123 account with the issue of card fees. I read a bit and I see that it's quite profitable. They give you up to 3% annually with more than €15,000 deposited. The problem is that they force you to use the card x times a month. I barely use the card so I would have to pay I think €100 a year for a penalty. Doing my calculations, those €100 could be offset by the interest and if I can save a little I could make a profit. Does anyone have it? Is there anything in the fine print that could give unpleasant surprises?

Thanks!

[Fassou]

In general (and even more so with banks), it is important to read contracts very carefully, and to know what you are signing, even though you know that many large service companies end up doing whatever they want, and in banks they send you the classic letter communicating changes in the service and if you do not respond within x time, the new conditions are considered accepted.

Probably Santander is the bank that requires the most commitment from its customers to opt for certain services (which in many cases they offer directly to new customers).

If you are with them, in a short time you will have to decide if you join the sect (buy shares) or run away from them.

I know cases that opted for the first option, and they already have the full package (deposits, retirement plans, etc...), but many more of those who opted for the second.

Personally, it is not a bank that I would recommend.

Salu2!

[Nemo]

In my opinion, it is one of the best current alternatives to get a good return for your money.
By meeting the basic requirements (payroll domiciliation, three utility bills, taxes, etc. and card usage), you can get a return of up to 3%, while current investment funds do not offer more than 0.05% at best.
This means that you get an average return of 350/380 euros per year for having your money in a current account available at any time (although if you do not reach the established amounts, logically they will give you less).
Until now, the maintenance of the cards was free, and it was necessary to use the card at least 6 times during a quarter. These movements could be of any amount (you could buy bread with the card if you wanted and it would already be valid) and even withdraw money from the ATM.
Now the obligation to use a credit card with a cost of 36 euros per year has been added.
By setting up this card as an immediate payment, it acts like a debit card, so it does not apply interest to your payments and by using this card the indicated number of times, it is no longer necessary to use the debit card that was required before (although you can continue using it if you want).
In any case, even with the increase of 36 euros in the card commission, it continues to be interesting since you get a bonus of between 324/344 euros per year without having to risk your money in investment funds or fixed-term deposits, which do not give you that return.
On the other hand, if the purchases you make with that new card exceed a certain amount, the bank adds new Santander shares to your portfolio as an extra bonus.
In my view, and as the current economic conditions are, this account is worth it, as long as you have the necessary capital and meet the conditions.
The negative part, and from which no bank is exempt, is the unilateral change of conditions. In that case, all that remains for us is to take our money and put it under a tile because in all places, beans are cooked.

I hope my answer has been of some use to you.

[palotes]

Two opposing opinions. I like it. @Nemo, what you say corresponds to what I had imagined. I will read the contract carefully to see if I can get some euros out of the little I have saved.

[Nemo]

@palotes reading the conditions is a prerequisite. Not all offers are for everyone and each case is unique.

[_Neptunno_]

Interesting what you have commented in this thread, I am quite lost in the banking world and for the moment I only have two accounts: ING Direct (which is the main one, with payroll account and orange account) and I have another one in Caja Duero-Caja España, which I am closing because I have nothing in it and they charge me commissions and other things.

I would like to look for another account so that I can have some savings and not be eaten by commissions. Suggestions are accepted.

Greetings!!

[Obione]

Having only read 1er menso I'm going to tell you that I think it's a shitty return if you're going to have to juggle. If you're going to think about money, there are many ways to tighten your belt without stress. If your accounts are clear then you go for it. To be scratching by for a few euros, get it out of your head and live happy. For everything else, Mastercard xD

Editing: I have the Cajamar e-account and they give me a miserable return. They also require X purchases per year, which are more than met to avoid paying the card maintenance (10 euros/year). Then they don't let you do business in branch but, online 0 commissions. If you don't handle money, this is for you. If you touch euros you would have to do a study and as my financial management teacher used to say: "Nobody gives away money for nothing". Return = risk.

[Fassou]

@_Neptunno_ said in Santader account 123, is it worth it?:

I would like to look for another account so that I can have some savings and not get eaten up by fees. Suggestions are welcome.

Many people who only needed basic services and were happy with their Savings Banks have ended up fleeing from the new banks they have become, with their heavy fees, and have ended up discovering the Rural Banks.

Since you already have the other account (ING) for important things, because I assume you have the cards for free, and transfers and other services without fees, if what you are looking for is to have another account and maybe cards without fees, look into the Rural Bank in your city or province, because they usually have accounts where it is enough to have a minimum balance ( ~ 3,000€ ).

I also tell you that the banking lobby is already pushing to get rid of these Savings Banks, seeing the growth they have had.

Salu2!

[_Neptunno_]

Thanks guys for your wise advice, I'll look into that Caja Rural thing, but it's true that lately the damn banks are more "ruthless" than ever.

And, well...I have a pittance of savings, the little I earn I spend on beer and enjoying life jajaja.
But well, you have to have a small cushion for the bumps and unexpected events.

@Fassou, I don't know if I gave you -1 first, and then +1...it's that I'm using "the dates" thing for the first time jajaja.

Regards!!

[Fassou]

I just saw that on a crappy website where they analyzed changes in some banking products (including the Account 1,2,3), some have mentioned that Evo Bank's also have very affordable conditions for having commission-free cards, so you can also take a look, although you can already read very well everything you sign (as always).

About the little arrows, don't worry

Salu2! Jugón!

[jordiqui]

With an online bank account, they don't charge maintenance fees in principle. But I have serious doubts about the lack of usury in banking. But since there is no other option, perhaps "ethical" banking is the most reliable option.

[Obione]

Mediolanum I think was offering better conditions than EVO, the latter have been cutting back on facilities. At first there was no minimum amount in the account and you could withdraw everywhere, I was told that they have limited the cash machines without commission and when I went to inquire (quite some time ago to be honest) they told me that if I didn't get 300 or 400€ a month there would be a commission.

[palotes]

I have been looking into it and there is one thing I don't like. It turns out that if I change my normal account to account 123, the state guarantee fund does not back my money. That is to say that if Santander has problems I can lose all my money. In contrast with my current account the state backs me up to 100,000 euros. Although Santander is one of the largest banks and all that, I don't trust it. Tomorrow a scandal will come to light about the big ones and they will get screwed.

[kynes]

@palotes According to European regulations, the deposit guarantee fund covers all deposits up to €100,000. In 2015, a chain letter came out saying that it did not cover it because it was a structured product, but it is based on false data. Of course it covers it.

Another thing is that in order to get the 3%, you have to do some juggling.

[Nemo]

@kynes it's not that hard to meet the usage requirements to get to 3% (except for the 15k ). Just by paying your usual purchases (supermarket, gas, shopping, etc.) with a card and direct debiting the bills for the II, electricity or the phone (the most expensive ones that return more money) is already enough.