Santander 123 rate to be cut to 1.5%

MDMD

According to the Daily Mail the 123 rate to be "slashed"

http://www.dailymail.co.uk/money/currentaccounts/article-3709286/Massive-blow-millions-customers-Santander-plots-slash-rate-Britain-s-favourite-current-account.html

The article says they are planning on moving to a flat 2% across all balances by October.

Wonder if it's the start of similar things....

Edit: title updated in light of recent news

http://blog.moneysavingexpert.com/2016/08/14/santander-123-slash-interest-1-5-ditch/?_ga=1.47393252.216515695.1467569480

Hazzanet

That'll be a huge rebranding exercise. The Santander 1-2-2 account.

MDMD

Hazzanet wrote: »

That'll be a huge rebranding exercise. The Santander 1-2-2 account.

They might be able to get away with it if it still pays 1, 2 or 3% cashback.

Ballard

That might well happen but I shall wait to see the news in an actual newspaper before I get too worried.

Sea_Shell

I really hope they don't, but the writing looks to be on the wall...It's getting harder and harder to make your savings work for you these days, without having to potentially find a home for 3 x 123!! I suppose if 2% is still one of the best rates (after the other higher % accounts are full) then it'll stay with Santander.

Money eh....you're either worrying about not having any....or worrying about what to do with it!!

vacheron

Well that would be another inconvenience if true. I've just opened and filled our second 123 after a lot of calls and follow-ups from the local branch. I wondered why they were suddenly being so pushy about signing up new accounts!

On top of that a letter from HSBC yesterday telling me their Advantage ISA (the only ISA I had that was still worth holding ) is to drop again from 1.2% to 0.8% at the end of September.

I guess that will have to go somewhere too, though I'll leave £1 in there to still get the £10 per month bonus.

The way things are going I'm half inclined to spend the ISA on general living costs over the next year or two and sacrifice all my taxable salary into my pension instead!

joe134

vacheron wrote: »

Well that would be another inconvenience if true. I've just opened and filled our second 123 after a lot of calls and follow-ups from the local branch. I wondered why they were suddenly being so pushy about signing up new accounts!

On top of that a letter from HSBC yesterday telling me their Advantage ISA (the only ISA I had that was still worth holding ) is to drop again from 1.2% to 0.8% at the end of September.

I guess that will have to go somewhere too, though I'll leave £1 in there to still get the £10 per month bonus.

The way things are going I'm half inclined to spend the ISA on general living costs over the next year or two and sacrifice all my taxable salary into my pension instead!

It was only a matter of time, others will follow suit.
They were loss leaders.
Good while it lasted.:(
I have not received any Hsbc letter about my Isa, but, am in the middle of transferring it to Leeds 2 yr fixed, assumed it would drop. Had all my £10's.:)
Shawbrook are doing 1 yr @ 1.3% Isa.new.

joe134

Ballard wrote: »

That might well happen but I shall wait to see the news in an actual newspaper before I get too worried.

Doubt it will be in the Guardian.:rotfl:

kingrulzuk

I was thinking of opening a 123 account next month but now I will just stick to the ones I have.

Kendall80

I've just sent them an instant message for confirmation. They probably wont tell me anything but its worth a shot. Time to start calculating if 2% is worth it over their £5 fee.

badger09

Ballard wrote: »

That might well happen but I shall wait to see the news in an actual newspaper before I get too worried.

Agreed

But, despite the source, it sounds very credible:(