Santander 123 rate to be cut to 1.5%

Archi_Bald

robin58 wrote: »

So explain to me?

The BoE drops base rate by .25% but Santander cut the rate to us by another .75%.

But mortgage holders will only get the .25% off.

Sounds a classic bank ripoff to me.

Where have you seen the new rates announced by Santander?

xylophone

Where have you seen the new rates announced by Santander?

http://www.santander.co.uk/uk/base-rate-change

Cornucopia

xylophone wrote: »

http://www.santander.co.uk/uk/base-rate-change

That just says they are "reviewing", as you would expect.

It also says that they are intending not to reduce rates on existing savings accounts by more than 0.25%.

Certainly, if the 1-2-3 account continues at Base Rate + 1.75%, I don't think that can be called a "classic bank ripoff". Not by a long way.

My 5-year Fixed ISA (Nationwide) is beginning to look like quite a shrewd move, though.

rebecca1982

Unfortunately, reviewing probably means they are gonna slash it soon.

It's almost not worth having savings these days!!!

schiff

rebecca1982 wrote: »

It's almost not worth having savings these days!!!

Having savings and the interest rate on those savings are two separate issues. Would you rather be in debt?

Nick_C

rebecca1982 wrote: »

It's almost not worth having savings these days!!!

That's what the BoE want you think. They have cut interest rates so you will spend your savings and boost the economy.

Personally, whilever I'm getting a real tax free return of more than 2% over inflation, I will continue to save.

Over62

Cornucopia wrote: »

That just says they are "reviewing", as you would expect.

It also says that they are intending not to reduce rates on existing savings accounts by more than 0.25%.

Certainly, if the 1-2-3 account continues at Base Rate + 1.75%, I don't think that can be called a "classic bank ripoff". Not by a long way.

My 5-year Fixed ISA (Nationwide) is beginning to look like quite a shrewd move, though.

Unfortunately the 123 account is a current account and not a savings account, so the quoted reduction of not more than 0.25% will not apply.

Cornucopia

Over62 wrote: »

Unfortunately the 123 account is a current account and not a savings account, so the quoted reduction of not more than 0.25% will not apply.

True. Let's see what happens.

Archi_Bald

xylophone wrote: »

http://www.santander.co.uk/uk/base-rate-change

Can't see the 0.75% reduction that robin58 complains about.

Ballard

Archi_Bald wrote: »

Can't see the 0.75% reduction that robin58 complains about.

Furthermore it's not a rip off to be paid 2% more interest than base rate anyway.