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MSE News: Santander 123 rate to be slashed to 1.5%
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MSE_Luke
Posts: 295 MSE Staff
Santander 123 slashes interest in current account blow to millions - should you ditch it?...
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Santander 123 slashes interest in current account blow to millions - should you ditch it?
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Santander 123 slashes interest in current account blow to millions - should you ditch it?
Click reply below to discuss. If you haven’t already, join the forum to reply. If you aren’t sure how it all works, read our New to Forum? Intro Guide.
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well that's me leaving! have kept with them as i was just teetering on the edge of the stay or swap borderline.
shame as they really had turned things around from the bad old days!
it wasn't that long ago that they hiked the subscription to £5 per month. will this be dropping anytime soon?
as i can see at least three family members all who have 123 accounts with them leaving too!
think this might not be good for santander's business loosing so many customers!0 -
I hope people start switching their accounts to other high interest paying banksWhat happens if you push this button?0
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well that's me leaving! have kept with them as i was just teetering on the edge of the stay or swap borderline.
shame as they really had turned things around from the bad old days!
it wasn't that long ago that they hiked the subscription to £5 per month. will this be dropping anytime soon?
as i can see at least three family members all who have 123 accounts with them leaving too!
think this might not be good for santander's business loosing so many customers!
It's a loss leader anyway, don't think businesses care very much about individuals leaving and saving them money.0 -
kingrulzuk wrote: »I hope people start switching their accounts to other high interest paying banks
It was the worst option of the high interest cutting accounts before the change so you'd expect people to have filled the better options already.0 -
Now Santander have made their intentions official (after recent media speculation) I'd imagine other interest bearing current account providers might follow suit.
Not only is it a kick in the teeth by halving the interest rate on balances up to £20,000 the overdraft fees increasing is a bit galling (for those who are always in it).It's not your credit score that counts, it's your credit history. Any replies are my own personal opinion and not a representation of my employer.0 -
Having filled everything else, wondering wha to do now (1/11)...0
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If keeping £20,000 in the account as a savings account, all other things being equal the November situation (ignoring tax and cashback) will be:
Interest on £20,000 at 1.5% = £300, less £60 account fee = £240
Interest on £20,000 in the top rate RCI account (1.2%) = £240
Therefore, unless RCI drops its rate, the only difference between RCI and Santander is the cashback. However, if this is less than £5 per month, it may be better to go for the Halifax Reward current account (£5 per month reward subject to criteria).
Therefore, I would suggest the following actions come November:
Average more than £5 cashback per month? Stick with Santander.
Are other high interest current accounts worth it (e.g. Club Lloyds) given they may well follow Santander's lead? Switch to the best one available at the time.
Otherwise, put savings in RCI and open a Halifax Reward Account.
IC0 -
It's a loss leader anyway, don't think businesses care very much about individuals leaving and saving them money.
it might have been a loss leader. but it attracted a lot of customers to switch to them
but with them hiking the fee's wasn't that meant to cover the losses?
anyway the loss of an individual probably wouldn't effect them much.
but if customers leave in their droves (which i suspect they will) that will have an impact on them.
i think its a bit shortsighted on santanders behalf as they had already hiked the fee's for this a while back.0 -
If you've exhausted all other higher interest current accounts and RSs I wonder at what point you start to consider Premium Bonds ?
Of course PB are not a guaranteed win but the prize fund is supposed to be 1.25 % so on £20,000 = £250 with the chance you could win higher....and lower of course.
If the £5 fee for Santander isn' t covered by cash back you will get £238...
If fee covered you will get £298..
Hmmm.....0
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