MSE News: TSB Enhance customer? Consider switching now as rates will be slashed

Steve_xx

Gromitt wrote: »

Probably the cash ISA, although it wasn't that good to begin with!

Ah right I see, thanks.

Chris2000

Steve_xx wrote: »

Interesting - which Halifax account/s are you talking about?

Halifax Web Saver Extra is being cut from 1.30% to 0.95% from 28th October. The letter says they "needed" to reduce the rate due to the decline in savings interest rates across the "whole market" and that it was a "difficult decision".

A week after receving the letter, they increased the rate for new customers on BM Savings Online Extra, from 1.30% to 1.35%, and that account has fewer withdrawal restrictions.

BM and Halifax are both just brands of Bank of Scotland. I don't object to them varying rates on a variable rate accounts, but it really grates when they lie about the reason and take their customers for idiots.

(Rant over!)

Steve_xx

Chris2000 wrote: »

Halifax Web Saver Extra is being cut from 1.30% to 0.95% from 28th October. The letter says they "needed" to reduce the rate due to the decline in savings interest rates across the "whole market" and that it was a "difficult decision".

A week after receving the letter, they increased the rate for new customers on BM Savings Online Extra, from 1.30% to 1.35%, and that account has fewer withdrawal restrictions.

BM and Halifax are both just brands of Bank of Scotland. I don't object to them varying rates on a variable rate accounts, but it really grates when they lie about the reason and take their customers for idiots.

(Rant over!)

Yes I take your point. There's far too much cheap money about it seems. It'll all end in tears I guess.

vixen1500

Just wondering after paying the £2 monthly what the interest rate on the 123 account works out to - if you take the £2 off after receiving interest on the full £20000

Thanks

vixen1500

Hope that wasn't too confusing

colsten

vixen1500 wrote: »

Just wondering after paying the £2 monthly what the interest rate on the 123 account works out to - if you take the £2 off after receiving interest on the full £20000

It depends. The less you have in the account, the less interest you get, and the more a £2 fixed charge would reduce the % interest rate you can realise.

Interest on a constant £20,000 balance is: 20,000 * 2.96, minus any tax you may have to pay. I'll leave it to you to then reduce the result by £24 and work out the %age.

Conversely, the more cashback you can get for your DDs, the less gets subtracted from your interest. Most people find they get something added, and their effective interest rate could therefore increase.

sjw1

I've got 5 maxed out Enhance accounts with £1000 transferring between them each month. With the rate halving, would opening up a 123 account be about the best option for me? I'd probably just transfer the balances of 4 of them and keep one as my main account still. No mortgage to pay off.

Steve_xx

sjw1 wrote: »

I've got 5 maxed out Enhance accounts with £1000 transferring between them each month. With the rate halving, would opening up a 123 account be about the best option for me? I'd probably just transfer the balances of 4 of them and keep one as my main account still. No mortgage to pay off.

I take that you also have two TSB Classic Plus Accounts? If not you could obtain those and stash 2k in each of them at 5%. If you already have these then yes, the Santander 123 account is a good solution for you.

sjw1

Thanks for that. No I don't have the Classic Plus accounts - but may set them up. Do they need to be set up in branch though - since the 'split', my 'local' TSB is about 15 miles away..
I assume 2 is the max. From what I can see, the only requirement is paying in £500/mth - no DDs are necessary. Can the two accounts be 'funded' by SOs between them?
What are the pre-reqs for the 123?

YorkshireBoy

sjw1 wrote: »

Thanks for that. No I don't have the Classic Plus accounts - but may set them up. Do they need to be set up in branch though - since the 'split', my 'local' TSB is about 15 miles away..

Online works just fine. Phone may also be an option.

I assume 2 is the max.

No need to assume anything. It states clearly on their website that the max sole accounts is 2.

From what I can see, the only requirement is paying in £500/mth - no DDs are necessary. Can the two accounts be 'funded' by SOs between them?

Yes.

What are the pre-reqs for the 123?

They're on their website, but in summary...

£500 monthly funding
2 DDs set up, but no need to pay out for interest (although be mindful of cancellation through dormancy)
Are you interested in cashback on some of your bills?

There may be better options to consider if there are two of you. Are there?