Santander 123 rate to be cut to 1.5%

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  • joe134
    joe134 Posts: 3,336 Forumite
    edited 19 August 2016 at 4:40PM
    skyepark wrote: »
    well this sucks

    I have opened up two Tescos 3% accounts and will be looking at the Lloyds account but what about the rest? is BOS vantage any good? I have a 1.99% mortgage rate maybe I should pay that off with the rest?
    these are also due to be reviewed.
    nowhere is immune now, only fixed rates, while around, then, to beat 123, it has to be 3yrs, to be worthwhile.
    I think Santander are expecting base to go lower, hence the drastic cut, saves doing 2, close together.
    .
  • Kendall80
    Kendall80 Posts: 965
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    joe134 wrote: »
    just looked at Atom, 2yr @ 2.2%,but never read any reviews on it?
    reckon it won't be around long.but, only up to 10k


    ... and 1 year fixed @2% You can open as many as you want apparently. Upto 10k in each. Full FSCS protection.


    This could start to look very appealing come November 1st (123: 1.5%).
  • Stuart_W
    Stuart_W Posts: 1,719
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    harz99 wrote: »
    Not necessarily the best idea to wait - fixed rate bonds are starting to drop as well, see Vanquis have just reduced all theirs, although not by 50%!

    I think I'd agree with this. Fixed rate bonds are being closed off all the time. Yorkshire Building Society pulled theirs last month, the co-op bank pulled all theirs at the close of business yesterday. Top payers like Vanquis have already reduced theirs further. 1.5% for might look very good in November, but it is possible to fix for higher at the moment (but I don't think it will for long).
  • joe134
    joe134 Posts: 3,336 Forumite
    edited 20 August 2016 at 7:00AM
    Kendall80 wrote: »
    ... and 1 year fixed @2% You can open as many as you want apparently. Upto 10k in each. Full FSCS protection.


    This could start to look very appealing come November 1st (123: 1.5%).
    I saw that , but wasn't sure if it meant as many as you want , up to £10k total across them all,( which seemed odd) or as many £10k bonds as you want, in my case 7.5 (fscs max),which still seems odd?? why not just one big A/c, as I have £60k+ in San123.
    need to look at T/cs further;;
    It's app only apply on .ipad/iphone.?
    new one to me.
    it's got a very short transfer window for monies in, so funds have to be available, which they are in 123 a/cs.
    prefer 2yr, don't want this again in 12 months, it's all I seem to do, and when others follow suit..arghhhhhhh
    shame, liked my 123's,BUT, must admit, rather fed up of the merry go rounds of DD,s and £1k+ - pm in/out all the time, but, it.s all ticked over well on it.s own for years.( not just 123 a/cs).
    would prefer it more simple, in case OH,et.al. has to sort affairs out;-)
    Been trying to consolidate A/cs for a while now.
    Perhaps 123 will give me the nudge.
  • joe134
    joe134 Posts: 3,336 Forumite
    edited 20 August 2016 at 7:47AM
    re-Atom T/cs.
    The total of all the funds held in your savings accounts with us cannot exceed our Maximum Balance Limit, which is currently £10,000. This limit excludes any interest we’ve paid into your account(s). We may change this limit from time to time – if we do, we’ll let you know and send you an updated version of these T&Cs.

    Is it me, or are Atom limiting all customers to a Max of £10K over all A/cs.
    Shame if it is.Perhaps that's why it's not been withdrawn.
  • bxboards
    bxboards Posts: 1,711 Forumite
    edited 20 August 2016 at 7:48AM
    Rather than a 2% fix, if I was me I would put this into a 1.95% ISA.

    https://www.utbank.co.uk/deposits/isa-accounts/

    It's for transfers only so if it was me, I would open a new ISA with Santander allowance from the funds from a 123 account then immediately transfer it out. This gives you 1.9% as opposed to 1.2% or less.

    Last month I drained one of my 123 accounts into a Nationwide 2% fixed ISA.

    I think anyone maxing out 123 accounts needs to consider ISAs again as its very clear all the high interest current accounts are in for the chop - I expect 1.5% to 2% to be the new normal.
  • joe134
    joe134 Posts: 3,336 Forumite
    edited 20 August 2016 at 8:12AM
    bxboards wrote: »
    Rather than a 2% fix, if I was me I would put this into a 1.95% ISA.

    https://www.utbank.co.uk/deposits/isa-accounts/

    It's for transfers only so if it was me, I would open a new ISA with Santander allowance from the funds from a 123 account then immediately transfer it out. This gives you 1.9% as opposed to 1.2% or less.

    Last month I drained one of my 123 accounts into a Nationwide 2% fixed ISA.

    I think anyone maxing out 123 accounts needs to consider ISAs again as its very clear all the high interest current accounts are in for the chop - I expect 1.5% to 2% to be the new normal.
    Hi B, I'm already maxed with Isas, just consolidated several this week with Leeds BS @ 1.4%; 2 Yrs
    .Wish I had gone longer now.BUT, never gone above 4 yrs on any A/c, but, now perhaps I should, got more Isas coming to fruition.
    Never seen this bank before Cheers

    I've never missed using my or OH's Isa allowance since inception' so amassed quite a large Isa pot,which is free of IHT.
    However, I do agree with you, especially if you are a tax payer.
  • 1kevfp
    1kevfp Posts: 45
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    The big banks have gone the same way as the big supermarkets, leaving the doors widly open for Aldi, Lidl, Home Bargains and B&M stores ( chairman Sir Terry Leahy!) So the likes of Atom etc will reap the benefits.I think the big banks forget there are some savvy customers out there
  • bxboards
    bxboards Posts: 1,711 Forumite
    1kevfp wrote: »
    The big banks have gone the same way as the big supermarkets, leaving the doors widly open for Aldi, Lidl, Home Bargains and B&M stores ( chairman Sir Terry Leahy!) So the likes of Atom etc will reap the benefits.I think the big banks forget there are some savvy customers out there

    Having looked at Atom they seem to be very focused on mobile banking, particularly iPhone and iPad

    Personally I would not want to be locked into owning a particular phone brand if it requires app access for long term fixed accounts. I think they need to be agnostic. I just need a browser to access my accounts, I don't need 'apps' or have a particular need to check fixed rate accounts on mobile devices.
  • adindas
    adindas Posts: 6,805
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    edited 20 August 2016 at 1:36PM
    When they increased the fee to £5 I think it is still reasonable.

    But if Santander slash the interest to 2% I will move my money around 20k to the Atom Bank or any other one year saving earning fixed interest of 2%+
    https://www.atombank.co.uk/fixed-saver

    It is fixed for one years. But
    - I have enough cash anywhere else to cover instant need or in rainy season.
    - No need to pay £5 fee.
    - No need monthly funding of £500

    The BOE is cutting the basic interest rate from 0.5% to 0.25% so if Santander acts rationally the interest cut should be around 0.25%

    From what I have read in this forum many people have the situation like me and have enough cash to be used instantly anywhere else so there will be enough space to move it temporary to one year fixed rate saving.

    I hope Santander will be doing enough research and risk assessment as they will definitely suffer the cash flow problem if many people move their money at relatively the same time span.
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