santander 123 account fee to rise

markharriers

What you guys think of the news of santander charging £5 from January? I have my account maxed at £20000. I am going to be looking for some current accounts and doing some figures to see if its worth me leaving them although its difficult with a large sum as most current accounts seem more for low sums of money.

http://www.telegraph.co.uk/finance/personalfinance/bank-accounts/11862290/Santander-123-current-account-fees-rising-to-5-in-January.html

talexuser

As you say, just work out cost vs benefit compared to best account available by January, now its around 1.6% gross. So if you have 20 grand in there and are getting 2 or 3% back on some good DDs it could still be worth it.

Pincher

I was wondering how long they could keep it up.

http://www.lse.co.uk/share-fundamentals.asp?shareprice=BNC&share=banco_san

They are earning 37.51p, but paying out 47.12p in dividend.

On the other hand, maybe it's a Ponzi scheme: the £20,000 has been paying for the 3% interest and the 47.12p dividend. :eek:

FSCS had better pay out, that's all I need.


What was the plan? Draw them in with the 3% deal, and they will get all kinds of profitable products from Santander? All they got are rate tarts leeching away at 3%.

I blame Kevin Costner: If you build it, they will come.

It's more like, if you put out a free buffet, they will swarm all over you.

markharriers

talexuser wrote: »

As you say, just work out cost vs benefit compared to best account available by January, now its around 1.6% gross. So if you have 20 grand in there and are getting 2 or 3% back on some good DDs it could still be worth it.

im considering putting future money into halifax isa fixed for 2 years at 2% as this will top up my finacial year allowance. The game will change again when tax saving allowance comes in in april.

markharriers

Pincher wrote: »

I was wondering how long they could keep it up.

http://www.lse.co.uk/share-fundamentals.asp?shareprice=BNC&share=banco_san

They are earning 37.51p, but paying out 47.12p in dividend.

On the other hand, maybe it's a Ponzi scheme: the £20,000 has been paying for the 3% interest and the 47.12p dividend. :eek:

FSCS had better pay out, that's all I need.


What was the plan? Draw them in with the 3% deal, and they will get all kinds of profitable products from Santander? All they got are rate tarts leeching away at 3%.

I blame Kevin Costner: If you build it, they will come.

It's more like, if you put out a free buffet, they will swarm all over you.

well put

i hope the 3% does not drop also because we can leave as quick as we arrived!!

bigfreddiel

markharriers wrote: »

well put

i hope the 3% does not drop also because we can leave as quick as we arrived!!

Interest rates WILL be going up so will 3% to 3.5 or even 4%

fj

POPPYOSCAR

Bad news but think will have to stay as nothing better around
at the moment and I think they obviously know that!

colsten

bigfreddiel wrote: »

Interest rates WILL be going up so will 3% to 3.5 or even 4%

What else does your crystal ball tell you?

POPPYOSCAR wrote: »

Bad news but think will have to stay as nothing better around
at the moment and I think they obviously know that!

There are "proper" 3% AER accounts, as well as 4% and 5% ones, easily taking £20K between them. Mind you, all rates are variable, so who knows whether those guys will follow the Santander lead.

PS. This is now the THIRD thread on Santander upping their monthly charge. Any bets on how many threads we will have by the time the last 123 customer will have realised the increase? Any board guides around?