Santander 123 rate to be cut to 1.5%

Futuristic

We'll see in time but usually when one drops, others will follow along

Katiehound

Rygar wrote: »

In a current account that gives zero interest. I appreciate that I can spread it around various accounts giving more than 1.5% but it seems a lot of hassle for the relatively low return. /QUOTE]

Well I wouldn't say that £8+ per month on £2K was a relatively low return!
I certainly think it is worth a bit of hassle to get 3-6% interest

harz99

Futuristic wrote: »

We'll see in time but usually when one drops, others will follow along

Hmm, Lloyds banking group for instance...

hoc

I am surprised they are keeping the limit so high and reducing the rate so much. This must now surely be the lowest rate among interest paying current accounts.

I get very little cashback having only essential utilities so for me the neat rate after fees will be closer to 1.2%. For now I will keep it as I have money in 1.2% savings account as best available after current accounts but even slightest further reduction by Santander I would close.

We were expecting a change but I struggle to follow the decision to only change the rate and not the fee or upper limit. Reducing from 20k to 10k or 5k with a smaller interest reduction I would have thought been better marketing. The fee I suspect is good stealth tactic for them but even without it 1.5% for an account sounds a bit rubbish. The existence of fee will also drive people to close accounts rather than just leave them inactive with a low balance.

I suppose this is now a cashback account to rival Natwest assuming the fee & interest combination works in your favour. If not for cashback, really no point at all.

Speculator

Rygar wrote: »

How does one go about this? Doesn't their system twig when it sees the same address etc? If I could open a second sole account this would effectively get me 3% again which would be great but seems too good to be true. I'm spitting feathers having opened an account one day before the media speculation regarding the drop in interest rates, I'm more mad at myself for not taking advantage of this account years ago

I simply logged in to my existing Santander 123 a/c and opened a second 123 a/c. This was in April so I don't know if it's still possible.

roddydogs

Look at the bright side, you have to go some to pay tax on savings now!

joe134

Ballard wrote: »

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

now do you believe it?
This post was at 2%.in DM beginning of July,and DM again@ 1.5% now;
It will only be in the FT after the event.:-)
or never in the G

No good worrying it's happening
and more to follow suit.
the good days seem to be coming to an end.:-)
that's £900 loss a year for me just on the 3 a/c's I have with them.

mapk

Anyone for Sexit?

Ballard

joe134 wrote: »

now do you believe it?
This post was at 2%.in DM beginning of July,and DM again@ 1.5% now;
It will only be in the FT after the event.:-)
or never in the G

No good worrying it's happening
and more to follow suit.
the good days seem to be coming to an end.:-)
that's £900 loss a year for me just on the 3 a/c's I have with them.

Yes, of course I believe it. I just didn't see any point in panicking before it was made official. Truth be told I don't see any point in panicking now either.

It's a hefty chunk of interest to lose but that's the way the market is nowadays. My employer lends hundreds of millions of Euros at negative rates so I'm rather blas! about low returns I suppose.

ratechaser

Well I'm trying to be philosophical about it... after all I've cost Santander a small fortune over the past 10 years, what with multiple 123 accounts, decent-ish ISAs, fee-free foreign CC spending, and arbing my very low rate mortgage funds into better paying savings accounts.

So I guess I mustn't grumble.

Even so... :mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad: