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more interest on my 123 current account than my isa??

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  • Archi_Bald
    Archi_Bald Posts: 9,681 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    They also know they can give whatever rate on £30K,

    £30K? Why not £45K?
  • YorkshireBoy
    YorkshireBoy Posts: 31,541 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Archi_Bald wrote: »
    £30K? Why not £45K?
    2 x 1-2-3 vs 3 x Vantage...unless I misunderstood you?
  • opinions4u
    opinions4u Posts: 19,411 Forumite
    Freecall wrote: »
    This is a marketing cost to increase their customer base and judging by the number of new account holders they claim to have gained is probably very cost effective.
    It is an ongoing cost that increases as balances increase. And their overdraft balances aren't increasing to even it out. Unsustainable.
    3% of the average balance is probably pretty cheap.
    It is extraordinarily expensive on £20k.
  • Archi_Bald
    Archi_Bald Posts: 9,681 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    2 x 1-2-3 vs 3 x Vantage...unless I misunderstood you?

    2 x 1-2-3 = £40K
    3 x Vantage (Lloyds variant) = £15K
    3 x Vantage (BOS variant) = £15K
    3 x Enhance = £15K

    All at a nominal 3% AER.

    So Santander are already behind the competition by £5K, and by 2 x £2 a month. People could just take their £40K in Santander and move it to the other banks, more or less overnight. I think it is safe to assume they don't need to read the MSE forum to know that.
  • Freecall
    Freecall Posts: 1,337 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    opinions4u wrote: »

    It is extraordinarily expensive on £20k.

    I said 'average balance'. I know that there are many of us on here with maxed out (and even multiple) accounts but this is not typical.

    According to the OFT the average credit balance in the UK is less than £1,000.

    http://www.publications.parliament.uk/pa/cm201011/cmselect/cmtreasy/612/61205.htm

    So maybe less than a tenner a year which is dirt cheap in marketing terms for the opportunity to on-sell to a customer base.
  • jimjames
    jimjames Posts: 18,709 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    Freecall wrote: »
    I said 'average balance'. I know that there are many of us on here with maxed out (and even multiple) accounts but this is not typical.

    According to the OFT the average credit balance in the UK is less than £1,000.

    http://www.publications.parliament.uk/pa/cm201011/cmselect/cmtreasy/612/61205.htm

    So maybe less than a tenner a year which is dirt cheap in marketing terms for the opportunity to on-sell to a customer base.

    Something like 60% of the population have either no savings or less than £500 (I seem to recall) so that may explain the average.

    I keep thinking 0% credit card deals cannot continue but just signed up another for 18 months. We are able to use knowledge to take advantage of these loss leaders but clearly there are others paying through the nose or leaving their savings at 0.1% that are paying for it.
    Remember the saying: if it looks too good to be true it almost certainly is.
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