Santander 123 rate to be cut to 1.5%
Comments
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With the new emerging of RSA paying 2.25%+ from Virgin, where you could put a lot sum of money under one platform (easy to manage), I will invite anyone who previously said it will not hurt Santander who have made with their decision to cut interest to 1.5%. Well actually lower 1.5% that if you do not have enough cash cashback and have not maximizing £20k limit.
Where are you now ??
I have already mentioned that rational people will switch their money into RSA rather than stay on Santander 123
A single person could put Virgin Money 9x£250= £2250 per month earning interest of 2.25%.
With the current state It will only take less than less than 9 moths to drain the £20k on Santander.
This is just product from VM not to mention other RSA which have been running for sometime earning 2%+.0 -
With the new emerging of RSA paying 2.25%+ from Virgin, where you could put a lot sum of money under one platform (easy to manage), I will invite anyone who previously said it will not hurt Santander who have made with their decision to cut interest to 1.5%. Well actually lower 1.5% that if you do not have enough cash cashback and have not maximizing £20k limit.
Where are you now ??
I have already mentioned that rational people will switch their money into RSA rather than stay on Santander 123
A single person could put Virgin Money 9x£250= £2250 per month earning interest of 2.25
With the current state It will only take less than less than 9 moths to drain the £20k on Santander.
This is just product from VM not to mention other RSA which have been running for sometime earning 2%+.
Only problem is it's too late for the earlier issues of branch and reg e savers now.0 -
If you're trying to pick a fight with someone who's said something you disagree with, why not find the relevant post/s and quote it/them if you feel it's worth it?I will invite anyone who previously said it will not hurt Santander who have made with their decision to cut interest to 1.5%. Well actually lower 1.5% that if you do not have enough cash cashback and have not maximizing £20k limit.
Where are you now ??
I have already mentioned that rational people will switch their money into RSA rather than stay on Santander 123
It seems pretty self-evident to me that any bank making cuts in interest rates runs the risk of losing some business but equally they're not stupid enough not to recognise that and plan for it. There was a recent thread about Bank of Scotland, where an apparently similarly-minded poster seemed to convince himself that BoS's recent cut in rates would lead to their imminent downfall, but they all know the consequences of their actions.
You may feel it's rational for people to move money from instant access into regular savers but that's not necessarily true - the latter clearly have better headline rates, for reasons we all know about, such as capped levels and finite durations, but it's not a like-for-like comparison so many will choose not to open multiple regular savers for entirely rational reasons!0 -
. . . and don't forget that you don't get interest on the full balance until the final month.
£3,000 invested for a year @ 2.25% should earn about £67 gross interest but £250 pm for year at 2.25% will only earn around £37 gross interest after a year.
Warning: In the kingdom of the blind, the one-eyed man is king.
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The Virgin Regular Savers, if you move quick enough, will allow 14 months of deposit and on that basis actually results in just under £50 a year of interest. Every month you aren't filling them it's final end value drops by about £6.
With regards to Santander 123, the Lite account was probably their solution to try and stem the tide as it were after the changes to the main account. But ultimately where you bank is up to you and I think we sometimes forget that.0 -
People who argue that Santander 123 paying 1.5% (minus fee of £60 is better than RSA earning 2.25%+ please put forward your argument here.
A lot of people here were Santander 123 account holders
http://forums.moneysavingexpert.com/showthread.php?t=608697&highli
Keep in mind those who drip feed their money to RS they either do not have lump sump of £20,00 or if they have excess money which are already sitting on other account earning some interest but less than 2% interest.
A few posts from people on this thread already explain what they are thinking about Santander 123.
Those who are asking for example, randomly checked
"I am going to transfer the money to my 123 where it's going via SO to various Regular savings accounts. Lowest RS we have is 2.5% @ the Penrith. All the others pay above 3%. (YBS x 2, N&P x 4, Nationwide x 2, Leeds x 2, Santander x 2, Lloyds x 2, Coventry (formerly Stroud) x 2, Saffron ISA x 2 etc)
I will leave the rest in my 123 which I am keeping open"
Another recent post
"Only problem is it's too late for the earlier issues of branch and reg e savers now."
I have seen many post like this, people who are asking more evidence, I will find it and quote it here if people want to pay time doing this deskwork.0 -
Consumerist wrote: ». . . and don't forget that you don't get interest on the full balance until the final month.
£3,000 invested for a year @ 2.25% should earn about £67 gross interest but £250 pm for year at 2.25% will only earn around £37 gross interest after a year.
You get interest on the entire balance for the time it's in the account. Why would they pay interest on money not there?I will invite anyone who previously said it will not hurt Santander who have made with their decision to cut interest to 1.5%. Well actually lower 1.5% that if you do not have enough cash cashback and have not maximizing £20k limit.
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I've not ever said that but maybe Santander don't care whether they have customers using their current accounts to stash multiples of £20,000 and would prefer to target those who actually want to use a current account as intended.Remember the saying: if it looks too good to be true it almost certainly is.0 -
People who argue that Santander 123 paying 1.5% (minus fee of £60 is better than RSA earning 2.25%+ please put forward your argument here.
Why? What would be the point? The interest rates are different, but so are the conditions and nature of the accounts. They are not comparable so cannot be 'better' or 'worse', it all depends on how you need to manage and access your money.If people want to pay my time I have seen many post like this, I will find it and quote it here if people want to pay time doing this deskwork.
Why would anyone want to pay you? For what?
The 123 change in interest rate has happened. It's history. Some people have moved money, some people haven't. It's up to them.
There's no need or demand for any analysis, and certainly not one based on the evidence of an internet forum, which will represent a very small sample (of unusually vocal) 123 account holders and so won't be anything even close to a representative cross-section.0 -
People who argue that Santander 123 paying 1.5% (minus fee of £60 is better than RSA earning 2.25%+ please put forward your argument here.
A lot of people here were Santander 123 account holders
http://forums.moneysavingexpert.com/showthread.php?t=608697&highli
Keep in mind those who drip feed their money to RS they either do not have lump sump of £20,00 or if they have excess money which are already sitting on other account earning some interest but less than 2% interest.
A few posts from people on this thread already explain what they are thinking about Santander 123.
Those who are asking for example, randomly checked
"I am going to transfer the money to my 123 where it's going via SO to various Regular savings accounts. Lowest RS we have is 2.5% @ the Penrith. All the others pay above 3%. (YBS x 2, N&P x 4, Nationwide x 2, Leeds x 2, Santander x 2, Lloyds x 2, Coventry (formerly Stroud) x 2, Saffron ISA x 2 etc)
I will leave the rest in my 123 which I am keeping open"
Another recent post
"Only problem is it's too late for the earlier issues of branch and reg e savers now."
I have seen many post like this, people who are asking more evidence, I will find it and quote it here if people want to pay time doing this deskwork.
I'd be tempted to spend spare time reading T&Cs (rather than expecting others to do this) instead of picking fights on here with mystery posters.
Have a good weekend0 -
Why would anyone want to pay you? For what?
The 123 change in interest rate has happened. It's history. Some people have moved money, some people haven't. It's up to them.
There's no need or demand for any analysis, and certainly not one based on the evidence of an internet forum, which will represent a very small sample (of unusually vocal) 123 account holders and so won't be anything even close to a representative cross-section.
IF you read the whole post you will notice someone here was asking for evidence. i have presented few evidence people saying moving their money from Santander 123 to RSA.
I am far from an idiot who wanted to waste time just to prove it to this person. Few random example that I have presented speak to itself. People who ask this evidence could find it himself. Alternatively I could do it for them for a fee.
The link I have presented here is the people who moved their money from Santander 123 to RSA, for these people it is very relevant. Keep in mind there are reasonable number of people saying the same thing. By the end of the day many people are looking to maximize interest.
http://forums.moneysavingexpert.com/showthread.php?t=608697&highli
Next time please read the whole thread before commenting.0
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