Santander 123 rate to be cut to 1.5%

adindas

Looking into cashback figure alone, if you earn more net cash back (cashback - fee) in Santander123 as you claimed, you must have had a mortgage with Santander in order to beat its competitors, the Cashback from Natwest.

Keep in mind, many people with Santander123 AC do not have mortgage with Santander. Anyway Santander Mortgage is not competitive enough, let alone on the top of the league. If people could, what will stop people to switch it to other better mortgage providers and ditch the 123 AC.

For the interest rate Atom Bank with 2% interest is a better alternative for many people ...

So
For many people (Atom Bank Saving of 2% + Cashback from Natwest) will beat Santander 123 A/C. For this people it is better to ditch it ...

Nick_C wrote: »

And I have already explained to you that if we only look at cashback on DDs, I would be better off switching to Natwest. I would gain £7 a year. Personally, I don't think its worth the hassle of switching to NatWest for £7 a year, especially as this is another loss leader. Especially when I can downgrade to 123 Lite, save £48 a year in fees, and be £41 a year better off than moving to NatWest.

But it's not only about cashback. It's about interest as well. If I keep the 123 account that pays 1.5% interest and keep an average balance of just £500 in it, the £7.50 interest means I am better off than switching to Nat West.

If you look at cashback minus fees, I can get more from Santander than I can get from Natwest. This may not be true for everyone.

Nick_C

adindas wrote: »

Looking into cashback figure alone, if you earn more net cash back (cashback - fee) in Santander123 you must have had a mortgage with Santander in order to beat its competitors the Cashback from Natwest.

Santander Mortgage is not competitive enough, let alone on the top of the league.

So now you're assuming that you know what my mortgage rate is and that its not competitive. :rotfl:

Your false sense of superiority does you no credit.

But at least we seem to have agreed:-

Many customers will see that the 123 remains a very good current account. Even with no interest, the cashback on DDs more than compensates for the fee for many.

Santander will end up with more customers than they had before they launched their loss leader 123 account.

And they, Santander, can borrow money on the markets much cheaper than 1.5%.

adindas

Nick_C wrote: »

So now you're assuming that you know what my mortgage rate is and that its not competitive. :rotfl:

Your false sense of superiority does you no credit.

I am referring in general case that Santander Mortgage offer is not on the top of the league not your particular case. Any link which could prove otherwise will be great ...

But if you think could get a good offer, good for you,

Nick_C wrote: »

But at least we seem to have agreed:-

No I do not

Nick_C wrote: »

Many customers will see that the 123 remains a very good current account. Even with no interest, the cashback on DDs more than compensates for the fee for many.

Some or few customers

Nick_C wrote: »

Santander will end up with more customers than they had before they launched their loss leader 123 account.

Totally disagree ....

Stompa

Nick_C wrote: »

I think only getting letters that explained how the changes will affect me and what my options are is a lot better than having to plough through a load of generic information that is not relevant to me. It's good customer service.

I don't have a problem with that, but my two letters were identical.

Nick_C wrote: »

Trying to collate letters from different print runs would probably have cost more than sending out multiple mailings to some customers.

I find that hard to believe.

Nick_C

adindas wrote: »

i I am refering in general case of Santander Mortgage offer. But you could reveal what interest have you got currently with them..

I could, but I don't feel inclined to spend more time proving you wrong.

Suffice it to say that I did a lot of research before taking out my mortgage, and gained a good knowledge of the market before getting the best product to meet my needs. But then I always do.

Good day.

Nick_C

Stompa wrote: »

I find that hard to believe.

Well that's my experience of managing large mailshots. Depends how your systems are set up and the software you are using.

adindas

Nick_C wrote: »

I could, but I don't feel inclined to spend more time proving you wrong.

Suffice it to say that I did a lot of research before taking out my mortgage, and gained a good knowledge of the market before getting the best product to meet my needs. But then I always do.

Good day.

At least, I could prove it in my case that when come to mortgage offer Santander is far from the best. Otherwise I would have chosen them as I have been banking with them and currently have reasonable number of products with them.

There are a lot of mortgage comparison websites and Santander is hardly on the top for many varieties of mortgage products.

YorkshireBoy

Nick_C wrote:

Santander will end up with more customers than they had before they launched their loss leader 123 account.

adindas wrote: »

Totally disagree ....

This is getting silly now!

By disagreeing, what you're saying is that ALL those customers who opened 123 accounts over the last 4 years will leave Santander in November. Here's a list of some of those who won't...

1. Those who have all the other high interest paying current accounts full, and for whom 1.5% AER is still the best instant access account available.

2. Those who have downgraded to 123 Lite, due to the lower fee and ongoing cashback.

3. Those who have downgraded to Everyday, thereby maintaining access to the regular saver.

And of course not forgetting all those new customers who are drawn to the 123 Lite.

adindas

I am commenting on
"Santander will end up with more customers than they had before"

YorkshireBoy wrote: »

This is getting silly now!
1. Those who have all the other high interest paying current accounts full, and for whom 1.5% AER is still the best instant access account available.
....

Yes but how many people have high interest paying current accounts full ?? The rest will have a better option to move money anywhere else ...
They might get the same customers who downgraded their ac to maintain access to RSA and Cashback but a lot chunk of money will be moved to anywhere else ...
Not to mention the option is widely open with S&S ISA for those who have not tried it and/or P2P lending for those who are more adventurous .....

Just to add:
What about a couple who have four of them after the change. Do they need to downgrade four accounts to Santander 123 lite or just one and close the others to maintain access RSA and cashback ??

So now with only one person instead of two means less customers ...

YorkshireBoy

adindas wrote: »

I am commenting on
"Santander will end up with more customers than they had before"



Yes but how many ??

It doesn't matter how many! They will have "more customers" than they had pre-2012. And that was the original assertion that you disagreed with!

The might get the same customers who downgraded their ac but a lot chunk of will be moved to anywhere else ...

I'm not clear if you're still talking about customers, or if you've changed to cash now? I'm not sure you are either!