Santander 123 rate to be cut to 1.5%

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  • adindas
    adindas Posts: 6,805
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    harz99 wrote: »
    I agree the rate is unbeatable for IA, however for many of us that have/had 3 accounts maxed out IA is not needed for the whole £60k, hence the stripping out of at least one into fixed rates and switching as we have done.

    Another point is that for many the second 123 account fee may not be offset by cashback so the actual interest earned is effectively less than 1.5%..

    Mind you there might be someone out there working for Santander who will say everything to make Santander 123 to look more attractive despite cutting the interest rate and increase in fee earlier, including arguing that people in general will need instant access of 60k simultaneously .......

    More over rational people who put their money into Santander 123 must have maxed out other better interest current account. So there must be any reasonable amount of cash available for instant access when people need it.
  • The interest rate cut has indeed prompted me to take 16.5k out of my 123 account and move it to higher-paying accounts (and earn switching bonuses at the same time). Once a better current account comes along, I will most defintely move the remainder out, as the small amount of cashback & large monthly fee does not justify it being open.
    Of course, if you factor in mortgage and large utility bill cashback, it does at least pay for itself, and leaves a small profit leftover. All about how many DD's you have and their values really.
  • Sea_Shell
    Sea_Shell Posts: 9,272
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    We've moved DH's money out into a higher rate account and switched to Halifax for £100. My sole account will probably go the same way, but it's being used as the 'float' for pension contributions and Regular savers, but once it's depleted, it's gone!!!
    How's it going, AKA, Nutwatch? - 12 month spends to date = 2.47% of current retirement "pot" (as at end February 2024)
  • adindas
    adindas Posts: 6,805
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    ashnojutsu wrote: »
    The interest rate cut has indeed prompted me to take 16.5k out of my 123 account and move it to higher-paying accounts (and earn switching bonuses at the same time). Once a better current account comes along, I will most defintely move the remainder out, as the small amount of cashback & large monthly fee does not justify it being open.
    Of course, if you factor in mortgage and large utility bill cashback, it does at least pay for itself, and leaves a small profit leftover. All about how many DD's you have and their values really.
    Sea_Shell wrote: »
    We've moved DH's money out into a higher rate account and switched to Halifax for £100. My sole account will probably go the same way, but it's being used as the 'float' for pension contributions and Regular savers, but once it's depleted, it's gone!!!

    Akhh --- Other examples how Santander might have underestimated the number of people willing to move out their money when they decide to cut interest rate to 1.5% despite increase of fee previously.

    People who get mortgage cashback in their Santander123 account might be better off to stay with Santander123. But I fully doubt if there are many people having Santander123 also have mortgage with Santander.

    Santander Mortgage is hardly ever make on the top of the league based on the various well known comparison sites. So unless you have a certain arrangement with Santander such as Santander employee (?) there is no point to take Santander Mortgage if you could get a better deal anywhere else ...
  • 1kevfp
    1kevfp Posts: 45
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    As a Satander 😈 supposed "Select?" client I wrote to my "relationship" manager expressing my displeasure at the cuts and monthly fee involved , but just got back a poorly gramatically written reply essentially towing the party line, I do however believe Santander or an employee will be looking at this thread - whether it will make any diffrence though ?:(
  • Jeems
    Jeems Posts: 200
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    1kevfp wrote: »
    As a Satander 😈 supposed "Select?" client I wrote to my "relationship" manager expressing my displeasure at the cuts and monthly fee involved , but just got back a poorly gramatically written reply essentially towing the party line, I do however believe Santander or an employee will be looking at this thread - whether it will make any diffrence though ?:(

    I'm not quite sure what other response you expected, its not as if he was gonna say "I'll keep it at 3% for you cos you're special"
  • 1kevfp
    1kevfp Posts: 45
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    Jeems,

    I do realise that so I found your reply patronising !

    We have been discussing recently a possible Santander underestimate of dissatisfied clients - a bit like Camerons underestimation ?
  • adindas
    adindas Posts: 6,805
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    edited 28 September 2016 at 3:31PM
    1kevfp wrote: »
    Jeems,

    I do realise that so I found your reply patronising !

    We have been discussing recently a possible Santander underestimate of dissatisfied clients - a bit like Camerons underestimation ?

    1kevfp
    The decision has been made, so It is extremely unlikely they will change their decision for whatever reason.

    The best thing to do is the vote on your own feet. If you could move your money elsewhere even it will mean you will need to apply multiple current accounts and regular saver account.

    In this thread alone there area already quite a few people have been doing so ....
  • I wonder to what extent other banks may also be watching this thread whilst they contemplate their reviews of their own accounts' benefits. :D
    >:)Warning: In the kingdom of the blind, the one-eyed man is king.
  • Nick_C
    Nick_C Posts: 7,442
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    I wonder to what extent other banks may also be watching this thread whilst they contemplate their reviews of their own accounts' benefits. :D

    Well NatWest is offering a loss-making cashback scheme on DDs, similar to Santander. But as NatWest is a basket case bank that has managed to lose fourteen billion pounds in the last 5 years, they will probably not be overly concerned about making any changes. I'm just glad I don't have shares in NatWest. Oh. Wait a second ....
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