Santander 123 rate to be cut to 1.5%

HellyH43

In view of Santander's proposal to reduce interest on current accounts by 50% I have contacted them asking they reduce the monthly current account fee of £5 by 50% as well!

I look forward to their response.

joe134

Ballard wrote: »

Joe,

I've stated clearly in a separate post that banks don't deserve our sympathy. What I've said in this post is that paying 2 or more percent on current accounts isn't good for the banks. Banks can't simply use balances on current accounts to lend at higher rates. They will be able to use some of it for that purpose but under liquidity rules they will need to keep a large percentage of it available for withdrawal. This means that they'll be lending it at a fraction of 1%. It simply doesn't make economic sense.

Writing in sentences is far from overrated.

I understand the liquidity rules, and some banks, still would fail if put under pressure, as in the last crisis, self created by them.
THEY borrowed to lend to much.
NR being a prime example.
The 3% being payed out to us, who have the money, not lucky, because it was hard earned, is being subsidised by other none interest paying A/cs,overdraft money etc. and Gov money.
It's a power struggle between the BIG banks for customers, a sprat to catch a mackeral.
It was never meant to last, the last BOE rate drop, just gave them the excuse they needed to drop these loss leaders.
I've made on them,at others expense.
I didn't make the rules, they did, and always will
It will never change, why would they build up reserves, when they are awash with cheap Gov money, and still on tap.
They are lending us our own money.
The small new banks cannot compete.
I honestly think, in time, we will have to pay for ALL banking , similar to other countries.It's not free here now, but, it will become restructured.
No bank will be allowed to fail, irrespective of the hyperbole.
Just grab it while you can

Ballard

I'm sorry, Joe but I've read your post several times and still don't get your point.

Best if we leave this argument I think.

gil13

Hi Guys, my sister has the 123 account, she has 20k savings in it and covers the monthly fee of £5 with cashback.

If she saves £300 per month (3600 pa) from the 123 account into First Direct fixed regular saver at 6%.

And £500 (£6000) per month from the 123 account into Nationwide regular saver at 5%.

How much would she get approx. in interest?
Would it be around £600 per year total?

Frogletina

gil13 wrote: »

Hi Guys, my sister has the 123 account, she has 20k savings in it and covers the monthly fee of £5 with cashback.

If she saves £300 per month (3600 pa) from the 123 account into First Direct fixed regular saver at 6%.

And £500 (£6000) per month from the 123 account into Nationwide regular saver at 5%.

How much would she get approx. in interest?
Would it be around £600 per year total?

The first direct account would give her approx £108 a year interest and Nationwide approx £150. She would also still get reducing interest from her Santander account but even including that would not gain £600 in total.

The above assumes that she does not earn more interest in total than her personal savings allowance allows.

YorkshireBoy

gil13 wrote: »

Hi Guys, my sister has the 123 account, she has 20k savings in it and covers the monthly fee of £5 with cashback.

If she saves £300 per month (3600 pa) from the 123 account into First Direct fixed regular saver at 6%.

And £500 (£6000) per month from the 123 account into Nationwide regular saver at 5%.

How much would she get approx. in interest?
Would it be around £600 per year total?

Q1. £516.50
Q2. No

uk1

Ballard wrote: »

Joe,

I've stated clearly in a separate post that banks don't deserve our sympathy. What I've said in this post is that paying 2 or more percent on current accounts isn't good for the banks. Banks can't simply use balances on current accounts to lend at higher rates. They will be able to use some of it for that purpose but under liquidity rules they will need to keep a large percentage of it available for withdrawal. This means that they'll be lending it at a fraction of 1%. It simply doesn't make economic sense.

Writing in sentences is far from overrated.

If you don't mind me saying so, in making a sensible general point you've made a rather sweeping statement that isn't always true as you seem to believe.

Some well ordered and organised banks might actually make a lot more money if they attracted high value clients with "come-on" high interest current account rates, if they had a range of products and services and good quality personalised quality contact with which they could better harvest high value customers.

It is ironic that in our case they have marketed a product where we have put some effort into putting a large total deposit over several accounts but have made no effort to either market to us or make us feel the slightest confidence in them as an organisation.

I feel that if Virgin or Hoares Bank or whatever for example offered the 123 account they would probably extract more out of us as customers that might more than offset the interest subsidy.

Jeff

1kevfp

As a Santander "select"😞 customer I rang their "select"😞 customer help line to lodge a complaint regarding their swingeing interest rate cut but the lad on the other end unsurprisingly just towed the party line. Suggest for what its worth if everyone affected lodged a complaint they may ? listen .. unfortunately as Martins blog today the Santander 1.5% account come November will still have the edge over others. I like the idea of asking for 50% off their £5 monthly though ...😆😈

Kendall80

1kevfp wrote: »

As a Santander "select"😞 customer I rang their "select"😞 customer help line to lodge a complaint regarding their swingeing interest rate cut but the lad on the other end unsurprisingly just towed the party line. Suggest for what its worth if everyone affected lodged a complaint they may ? listen .. unfortunately as Martins blog today the Santander 1.5% account come November will still have the edge over others. I like the idea of asking for 50% off their £5 monthly though ...😆😈

I gave this a try via instant message just to see their response. I sent a very considered, level headed message and I got back a step-by-step guide to closing my 123 account. I now see where the complaints about Santander customer service come from.

eskbanker

1kevfp wrote: »

As a Santander "select"😞 customer I rang their "select"😞 customer help line to lodge a complaint regarding their swingeing interest rate cut but the lad on the other end unsurprisingly just towed the party line. Suggest for what its worth if everyone affected lodged a complaint they may ? listen ..

Kendall80 wrote: »

I gave this a try via instant message just to see their response. I sent a very considered, level headed message and I got back a step-by-step guide to closing my 123 account. I now see where the complaints about Santander customer service come from.

They're not stupid enough to think that a halving of the interest rate will be well-received so won't be expecting anyone to be happy about it, but, having said that, is there really any point in complaining to them about it? Is anyone seriously expecting them to turn round and say, 'oh OK, nobody likes this decision so we'll reverse it'?!