Santander 123 rate to be cut to 1.5%

fun4everyone

Damn I was happy with my cash across all these sort of current accounts/monthly savers and the excess in P2P. However 2% is not great on 20k Time to start looking at stocks and shares I guess sad panda.


It might turn out not to be true but with the low interest rate environment, rumours of further BOE cuts and other providers cutting rates it does seem credible. Thanks for the link OP.

Cornucopia

Hazzanet wrote: »

That'll be a huge rebranding exercise. The Santander 1-2-2 account.

It can still be the 1-2-3 account...

ONE account per customer
TWO percent interest across the board
THREE cashiers at lunch

eskbanker

fun4everyone wrote: »

However 2% is not great on 20k Time to start looking at stocks and shares I guess sad panda.

There are many good reasons for investing in stocks and shares but a reduction in the interest rate of a bank account is rarely one of them, given the entirely different risk, volatility and timescale profiles of investment versus saving! What are your objectives?

fun4everyone

eskbanker wrote: »

There are many good reasons for investing in stocks and shares but a reduction in the interest rate of a bank account is rarely one of them, given the entirely different risk, volatility and timescale profiles of investment versus saving! What are your objectives?

Hey hold up esk I aint diving into anything. I said start looking. I was happy with 3% just want a better rate than that on cash. Don't think I will go piling into high risk or anything. I will have a read. I never touch the cash in 123.

karlie88

Meh, it's bound to happen, just a case of 'when' rather than 'if'.

It's been one of the best accounts for a while, especially when they allowed 2 sole accounts.

I blame Jessica Ennis-Hill, Rory McIlroy, Jenson Button, Brexit and Martin Lewis.

Time to open more 3%+ regular savers with building societies.

Onwards and upwards...

fun4everyone

Santander minus 1

bxboards

karlie88 wrote: »

Time to open more 3%+ regular savers with building societies. .

I would have thought it would make much more sense to use high paying bank current accounts first, especially with anyone who is maxing out the 123.

A 3% regular saver will pay roughly 1.5% in real terms and you can only put in a small amount.

If you have say 5k in the 123, you'd be much better to put it into a Club Lloyds paying 4%.

Natiowide do a 5% regular saver, which if you put in the full 6k or 500 a month pays roughly the same as 2.5% deposited for the full year so that would be better than the 123 when it goes to 2%.

roddydogs

3% Reg saver is 3%, not 1.5%!

colsten

bxboards wrote: »

A 3% regular saver will pay roughly 1.5% in real terms and you can only put in a small amount.

A 3% regular saver will pay exactly 3% interest. Please stop feeding the myth that the interest rate of regular savers is lower than advertised.

bxboards

roddydogs wrote: »

3% Reg saver is 3%, not 1.5%!

If I have a lump sum in Santander 123, it is paying 3% for the full year.

A regular saver paying 3%, only the first months payment gets the 'full' 3%.

To get close to the 123 returns, you need to be looking at 5% or 6% regular savers, not the 3% ones.