Santander 123 rate to be cut to 1.5%

youngretired

Hello Grade_A_Reject

I don't know if I'm reading your table correctly but Tesco only give you 3% up to a maximum of £3000.

xylophone

but the lad on the other end unsurprisingly just towed the party line

Pulling the money in?:D

karlie88

Grade_A_Reject wrote: »

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.

Why not open their savings account to avoid the £10 monthly fee? Their credit card offers no major benefit IMO, plenty of other credit cards out there with cashback, promotional offers etc.

Grade_A_Reject

youngretired wrote: »

Hello Grade_A_Reject

I don't know if I'm reading your table correctly but Tesco only give you 3% up to a maximum of £3000.

Thanks. Thought it was £3500. It will have a minimal effect on my figures though (3% of £500) as any comparison I was making over 4k I was basing on the premise that the maximum monthly income regardless of balance would be £8.75 gross.

I've already decided to switch my bills to my FD account and open a Tesco Current account. I already have a Club Lloyds @ 4% and two TSB @ 5% all maxed so the 123 is an overspill.

I'm guessing the other banks will soon follow suit and lower their rates accordingly so will continue to review until the playing field levels out.

Grade_A_Reject

karlie88 wrote: »

Why not open their savings account to avoid the £10 monthly fee? Their credit card offers no major benefit IMO, plenty of other credit cards out there with cashback, promotional offers etc.

That would be another way of avoiding the monthly account fee but as their savings accounts pay interest rates which are fractions of a percent I wouldn't be looking to keep any money other than the £1 minimum balance in one!

[edit]

I've just thought of one major benefit of the CC over a savings account for me anyway. I have £5k at zero percent sitting on an FD credit card currently in my Club Lloyds account earning 4%.

schiff

badger09 wrote: »

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

I think I misread this:

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.

ceredigion

schiff wrote: »

I think I misread this:

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 put a quid in there savings account

djpailo

The advice Martin gives is correct. Wait and see what the other banks are going to do. It may well be that 1.5% may still end up as a decent rate in comparison to others. I myself am going to open up a fixed bond for five years which has a decent rate and put some money away for the future. I can't see interest rates getting any higher and even the regular savers might go down (TSB went down to 2% and I think Lloyds went down too?).

1kevfp

First Direct ref their cuts have stated " when setting our rates we take into consideration a number of factors, including COMPETITOR ACTIVITY !" That smells of collusion to me... looks like premium bonds for me instead of a poxy .90% from F.D- worth the gamble ?

roddydogs

Wow, Martins advice, stay with Santander till it drops, then see what others do, No shxx Sherlock.