Santander 123 rate to be cut to 1.5%

Ballard

uk1 wrote: »

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

I take your point to an extent but if we're only talking about the 123 account that's only £60k per couple and I wouldn't expect many banks to class that as a large amount. Perhaps a competitor could offer 123-ish rates on condition that the customer also held a decent sized stock portfolio, for example.

uk1

Ballard wrote: »

I take your point to an extent but if we're only talking about the 123 account that's only £60k per couple and I wouldn't expect many banks to class that as a large amount. Perhaps a competitor could offer 123-ish rates on condition that the customer also held a decent sized stock portfolio, for example.

Some couples have substantially more than £60k in Santander 123 accounts.

Jeff

schiff

Frogletina wrote: »

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.

Doesn't the FD account lose a year's interest on the £1000 obligatory balance though?

badger09

schiff wrote: »

Doesn't the FD account lose a year's interest on the £1000 obligatory balance though?

What leads you to believe there is a '£1000 obligatory balance'?

Ballard

uk1 wrote: »

Some couples have substantially more than £60k in Santander 123 accounts.

Jeff

As I think we've agreed, the 123 account is a loss leader. Having more than £60k simply means more of a loss. It only really makes sense from Santander's point of view if it's combined with other products such as share trading.

1kevfp

I also doubt my and others complaints will reverse" Satanders😈" decision but if we all just stayed silent - nothing positive would ever happen for the consumer

skyepark

well this sucks

I have opened up two Tescos 3% accounts and will be looking at the Lloyds account but what about the rest? is BOS vantage any good? I have a 1.99% mortgage rate maybe I should pay that off with the rest?

Grade_A_Reject

I've crunched my own figures through Excel and by my reckoning factoring in what I receive as cashback and the monthly account fee (which leaves me at a net £1.78 loss to start with) I'd need to maintain a balance of over £8400 to be better off than switching my bills to my First Direct account and keeping my cash balance in a Tesco Current account *currently* paying 3%.

skyepark

you don't have to maintain 1000 in the first direct account you just cycle the money in or am I wrong?

"Banking with first direct usually costs £10 a month, but you will not be charged this fee for the first six months from account opening, or when you pay in at least £1,000 to your 1st Account each month, or maintain an average monthly 1st Account balance of £1,000, or you hold a selected first direct additional product."

I took an the additional product to avoid this.

Grade_A_Reject

skyepark wrote: »

you don't have to maintain 1000 in the first direct account you just cycle the money in or am I wrong?

"Banking with first direct usually costs £10 a month, but you will not be charged this fee for the first six months from account opening, or when you pay in at least £1,000 to your 1st Account each month, or maintain an average monthly 1st Account balance of £1,000, or you hold a selected first direct additional product."

I took an the additional product to avoid this.

Easiest way is just open a credit card account with them (First Direct). Just spend a few pence every few months then clear the balance to stop it becoming dormant.