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more interest on my 123 current account than my isa??
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YorkshireBoy wrote: »They also know they can give whatever rate on £30K,
£30K? Why not £45K?0 -
Archi_Bald wrote: »£30K? Why not £45K?0
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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.3% of the average balance is probably pretty cheap.0
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YorkshireBoy wrote: »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.0 -
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.0 -
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.0
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