Santander 123 rate to be cut to 1.5%

YorkshireBoy

rebecca1982 wrote: »

I think our savings are pretty safe in the 123 right now. There's not a huge amount of choice out there unless you fancy earning less than 1%......

There's enough "choice" out there to get well over £70K of your cash making the same or better rate than Santander 1-2-3...before having to resort to 1%...or 2% with Santander if the rumours are true!

mayhew132

I'm overall pleased with the Santander product, especially with the £20k limit - earnt just shy of £5.5k out of the 123 cashback and interest since opening making it one of the best secure investments for 2 years. Also pleased with the 5% monthly saver, even though the limit is £200 per month.

One of the things I've done though is spread cash out amongst different current accounts like the Nationwide, TSB. Lloyds and Tesco ones - but ultimately if interest rates are to fall across the industry these will become less lucrative.

YorkshireBoy

mayhew132 wrote: »

I'm overall pleased with the Santander product, especially with the £20k limit - earnt just shy of £5.5k out of the 123 cashback and interest since opening making it one of the best secure investments for 2 years. Also pleased with the 5% monthly saver, even though the limit is £200 per month.

The product has been available for 4 years, so £2,400 interest if you've had it since launch (although then you mention 2 years?). You must have made some serious cashback in that 4 year period...£3,000 equates to £62.50 a month. That's impressive!...whether it's before or after the fee.

Unless you've more than one?

mayhew132

Have 4 of them, but only in the last 18 months have they all been full, may have been 3 years since having them - time goes quick!

FrankRizzo

mayhew132 wrote: »

Have 4 of them, but only in the last 18 months have they all been full, may have been 3 years since having them - time goes quick!

Are you allowed 2 per person, so you and wife can have 2 each = 4 in total??

eskbanker

FrankRizzo wrote: »

Are you allowed 2 per person, so you and wife can have 2 each = 4 in total??

No, current terms are one sole and one joint per person, so a total of three for a couple, although the rules were less strict in earlier years so some have more than this....

whattochoose

So depressing being a saver these days. Still, preferable to being in credit than being indebted I suppose.

brewerdave

Be interesting to see what the capital outflows for Santander are like, if they cut the 123 interest rate.With the £5 fee,a cut to 2% (or worse!) is going to make the case for some to move all their money elsewhere. We have 3 full accounts ,so will need to look around for alternative homes.:(

Nick_C

whattochoose wrote: »

So depressing being a saver these days...

I disagree. Savings accounts have never been a good way to generate income. In the past, people often looked at headline interest rates and ignored inflation, but I would say a real rate of return of 1% after tax has been typical for the last 40 years.

We currently have savings giving us 4% tax free, and RPIx inflation is 1.7%. We've never had it so good.

OK, you have to work for it. Our money is spread between 10 accounts at 6 different banks. But thanks to the internet, it's never been so easy to open and manage a bank account.

As well as a real return on savings, we are getting cashback of between 0.5% and 5% on all our payment cards.

If you have so much in savings accounts that you are exceeding the £1K tax limit, and you don't need the money in the short term, then you really should be thinking of investing.

Pincher

brewerdave wrote: »

Be interesting to see what the capital outflows for Santander are like, if they cut the 123 interest rate.With the £5 fee,a cut to 2% (or worse!) is going to make the case for some to move all their money elsewhere. We have 3 full accounts ,so will need to look around for alternative homes.:(

Where to?

I see us being stranded on a Pacific island, slowly sinking into the rising sea level, as the ice caps melt.

Investment scam sharks are already circling, I'm sure.