Santander 123 rate to be cut to 1.5%

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  • adindas
    adindas Posts: 6,813 Forumite
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    Nick_C wrote: »
    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 ....

    BOS is offering the same scheme with Natwest. Earn 3% in Rewards on selected household bills paid by Direct Debit. How come this one is a loss-making business ?
    http://personal.rbs.co.uk/personal/current-accounts/compare-current-accounts/reward-account.html
    It is absolute nonsense to mention it is a loss-making business. If so why BOS is also offering the same scheme ??

    Unless for people working for Santander, why should anyone else here care about loss-making cashback scheme on DDs from Santander competitors. It is not the business of MSEs member here to think about the loss making business of a bank. People are more interested in seeing whether they could get a better deal. In this case Natwest and BOS beats Santander for people aiming at cashback if they could generate a lot of cashback from DD.

    Do you have evidence such as news, credible link, etc where you could demonstrate that Natwest and/or BOS cashback account is a lost making business ?? The intangible benefit of the account such as cross selling will need to be accounted.
  • enthusiasticsaver
    enthusiasticsaver Posts: 15,585 Ambassador
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    edited 12 October 2016 at 8:50PM
    The difficulty is that all the banks are reducing their interest rates on current accounts so Santander is not alone. We have one Santander 123 (closed one down when fee went up to £5) and the cashback of £8-£9 per month covers the fee and as we tend to keep around £20k in it obviously the interest rate dropping by half means £25 per month instead of £50. Lloyds, TSB, Halifax rewards are also now dropping the benefits on theirs. So for next year looks like Tesco, and BOS with 3% will be the best on offer. TSB with only £1500 is hardly worth it. My Nationwide flex account has just got to 12 months so that is down at 1% now. Still, it was good while it lasted.
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  • Nick_C
    Nick_C Posts: 7,455 Forumite
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    adindas wrote: »
    BOS is offering the same scheme with Natwest. Earn 3% in Rewards on selected household bills paid by Direct Debit. How come this one is a loss-making business ?

    BOS is not offering the same deal as NatWest.

    RBS is offering the same deal as NatWest for customers in Scotland. That is because RBS owns NatWest.
    adindas wrote: »
    It is absolute nonsense to mention it is a loss-making business.

    why should anyone else here care about loss-making cashback scheme on DDs from Santander competitors. It is not the business of MSEs member here to think about the loss making business of a bank.

    RBS (NatWest) is a basket case bank that has managed to lose fourteen billion pounds in the last 5 years.

    We should all care, because we - the taxpayers - own more than 70% of RBS. It's our billions that they are losing.
  • adindas
    adindas Posts: 6,813 Forumite
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    Nick_C wrote: »
    BOS is not offering the same deal as NatWest.

    Thank you for highlighting the obvious typo as the original link refer to RBS.
    Nick_C wrote: »
    RBS is offering the same deal as NatWest for customers in Scotland. That is because RBS owns NatWest.

    RBS (NatWest) is a basket case bank that has managed to lose fourteen billion pounds in the last 5 years.

    We should all care, because we - the taxpayers - own more than 70% of RBS. It's our billions that they are losing.

    Rather than leading to a discussion where it has not been proven true, please provide evidence such as credible news, credible link, etc where you could demonstrate that Natwest and/or RBS as an institution is making loss due to the launch of cashback scheme. It is not a clever idea to teach the people who are professional bankers to run their bank as they definitely have more internal information, statistics than ordinary people.

    For people who sincerely care about RBS they should lead initiave for people to vote so if there are enough people want it this issue will be discussed in the parliament. The chairman of RBS / Natwest will need to be summoned. If proven that they launched product which is a clear a loss making business to the bank but still launching the product they will need to be fired. The intangible benefit of the account such as cross selling will need to be accounted.

    I am awaiting someone who said he really care to launch an initiative and let the people now so people could decide whether to support this petition. Here is the link to launch a petition.

    https://petition.parliament.uk/

    I will definitely put my signature on it if someone could prove and provide any evidence regarding Nat west and RBS.
  • No_6
    No_6 Posts: 835 Forumite
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    has this just gone into laalaa land ?
  • Nick_C
    Nick_C Posts: 7,455 Forumite
    Name Dropper First Anniversary First Post Home Insurance Hacker!
    Today's news:-

    "Royal Bank of Scotland has emerged as the biggest failure in the Bank of England’s annual health check of the UK banking system.
    The bank, which is 73% owned by taxpayers, issued a plan on Wednesday to Threadneedle Street intended to bolster its financial strength by an estimated £2bn.
    On RBS, the deputy Bank governor, Sam Woods, said: “It’s taking a long time to move this bank forward.”

    As I said, a basket case bank.
  • Consumerist
    Consumerist Posts: 6,310 Forumite
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    No_6 wrote: »
    has this just gone into laalaa land ?
    Yep. I think you could safely say that.
    >:)Warning: In the kingdom of the blind, the one-eyed man is king.
  • Pincher
    Pincher Posts: 6,552 Forumite
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    It is true!

    06/12/2016 INTEREST PAID AFTER TAX 0.00 DEDUCTED £24.43

    Versus

    07/11/2016 INTEREST PAID AFTER TAX 0.00 DEDUCTED £46.93

    AND I have to pay 20% tax on it.

    Have to be really careful not to stray into 40% tax now.

    40% tax on 1.5% interest! :eek:
  • Consumerist
    Consumerist Posts: 6,310 Forumite
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    Pincher wrote: »
    . . . 40% tax on 1.5% interest! :eek:
    Who said the ISA was dead ?
    >:)Warning: In the kingdom of the blind, the one-eyed man is king.
  • Pincher
    Pincher Posts: 6,552 Forumite
    Combo Breaker First Post
    Consumerist wrote: »
    Who said the ISA was dead ?

    As it turns out, the HSBC Loyalty ISA stopped paying ~1.5% about a year ago. Hence the Exodus of £75k from the Cash ISA into S&S ISA.

    A very volatile year later, it's now £88k. Tax Free. :j
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