Santander to cut ISA rate

Be_Happy

Just read that Santander is to cut the rate of its Instant ISA from 1.6% to 1.2% from Tuesday. There is to be a new instant ISA for 123 Customers at 1.7%.


Hope there is an easy way for existing ISA customers to switch or upgrade to new 123 ISA rate as I've just opened the existing one.


Edit: Have read another report that says rate cut is only for new customers, so not sure which is correct, but don't see how they can offer different rates within the same ISA when it's not a fixed rate.

butterflymum

Apparently their 2 year fixed rate Isa dropped yesterday from 2% to 1.8% for new customers too. It still has 2.3% fixed rate for 123 customers.

sparrer

butterflymum wrote: »

Apparently their 2 year fixed rate Isa dropped yesterday from 2% to 1.8% for new customers too. It still has 2.3% fixed rate for 123 customers.

Now I'm confused, I contacted Santander yesterday re my 2 year fixed ISA, taken out last May. They replied that it will remain at 3% until May 2015. Perhaps it's a different type of ISA? As I said, confused.

TattyBear

Clearly Santander are trying to get all their customers on to a fee charging current account.

As if these scumbag banks don't make enough money already.

YorkshireBoy

TattyBear wrote: »

Clearly Santander are trying to get all their customers on to a fee charging current account.

As if these scumbag banks don't make enough money already.

I'd wager that the 1-2-3 account actually makes them a loss for a very large proportion of their customers. I mean, £2 a month is easily recoverable in cashback. And the (up to 3% AER) interest is the icing on the cake.

Archi_Bald

TattyBear wrote: »

Clearly Santander are trying to get all their customers on to a fee charging current account.

As if these scumbag banks don't make enough money already.

Huh? How do you draw the conclusion you are drawing?
How can you not make money from a Santander 123 account? You would have to try exceptionally hard.

Archi_Bald

sparrer wrote: »

Now I'm confused, I contacted Santander yesterday re my 2 year fixed ISA, taken out last May. They replied that it will remain at 3% until May 2015. Perhaps it's a different type of ISA? As I said, confused.

That sounds a very easy one. You appear to be on a 2 year fixed rate of 3% until May 2015. Le probleme, qu'est que ce? Sorry.

freddysmith

Should I be reasonably confident that Santander will allow our maturing 2yr FRISA’s on May 1st to be upgraded/transfered to a new 2yr FRISA at the 2.3% rate without having to add new money?

innovate

If they are still offering that 2.3% FRISA on May 1, there is no reason why you should need to put any new money into it.

I have never seen any ISA transfer that forces you to put new money into it (not even the ones that on the face of it need £1 to open- you just forget to send the £1, and ONLY send the transfer form).

butterflymum

sparrer wrote: »

Now I'm confused, I contacted Santander yesterday re my 2 year fixed ISA, taken out last May. They replied that it will remain at 3% until May 2015. Perhaps it's a different type of ISA? As I said, confused.

No need to be confused. As the name of your ISA suggested, it was and is Fixed Rate until the end of its term. This thread is talking about the Instant Access (variable rate) ISA and Fixed Rate ISA products Santander have been offering recently, and how, after a very short time, the rates have been/are about to be dropped (for new customers only in respect of the Fixed Rate one). Hope this helps.

sparrer

butterflymum wrote: »

No need to be confused. As the name of your ISA suggested, it was and is Fixed Rate until the end of its term. This thread is talking about the Instant Access (variable rate) ISA and Fixed Rate ISA products Santander have been offering recently, and how, after a very short time, the rates have been/are about to be dropped (for new customers only in respect of the Fixed Rate one). Hope this helps.

Thanks for the clarification butterflymum - wish they (all of them) would just keep it simple!